Category Archives: Rebates

There Is Nothing Wrong With Your Television Set

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(TV image from webtvwire.com)

There is nothing wrong with your television set. Do not attempt to adjust the picture. We are controlling transmission. If we wish to make it louder, we will bring up the volume. If we wish to make it softer, we will tune it to a whisper. We will control the horizontal. We will control the vertical. We can roll the image, make it flutter. We can change the focus to a soft blur or sharpen it to crystal clarity. For the next hour, sit quietly and we will control all that you see and hear. We repeat, there is nothing wrong with your television set. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to… The Outer Limits.”

That was the advice viewers heard at the beginning of each episode of “The Outer Limits“, a sci-fi TV series originally broadcast from 1963 to 1965. Now, 45 years later, Americans are getting some new advice, and yes, those same scary people are still “controlling transmission”. This time, however, there IS something wrong with your television set… the problem is that it’s analog, not digital.

When the clock strikes Midnight on February 17, 2009 (six months from this writing), your decrepit, old analog television sets will become electronic boat anchors, and you will be dragged into the brave new world of digital TV, whether you like it or not. You can enter the digital realm by replacing your beloved boat anchor with one of those shiny new digital HDTVs. Or, you can give your analog friend a reprieve by adding a set-top converter box which will allow your analog TV to pick up those new-fangled ATSC digital broadcasts, more commonly known as DTV or Digital TV. Learn more about DTV at the U.S. government’s official digital television website, www.dtv.gov.

A small number of stations in the United States will still be allowed to continue broadcasting those old NTSC analog signals after February 19th, but for the most part, analog TV sets will stop working on that date. And if you get your daily fix via cable or satellite TV, no worries. Nothing will change for you a few days after the St. Valentine martyrs get their annual tribute.

Now we don’t know about you, but the mere thought of being denied our god-given right to watch infomercials and the home shopping network 24×7 has put us into a digital frenzy. We’re pretty sure that those converter boxes will become scarcer than hens teeth as the deadline approaches. Expect long lines at electronics retailers, with people camping out at the local Best Buy, waiting for the next shipment of converter boxes to arrive from China by armored car. The lines will be so long, you’ll think Nintendo, Sony or Microsoft was releasing their newest game console. People will be paying proxies to stand in line for them. Scalpers will be buying the converter boxes and selling them on eBay at 300% markups. So, with these visions of my digital future weighing heavily on my mind, I’ve decided to start my dtv converter box shopping now.

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Gamers line up to buy the Nintendo Wii (from zeldawii.com - click on photo)

Uncle Sam, in the guise of the U.S. Department of Commerce’s National Telecommunications and Information Administration (doesn’t that name just roll off your tongue?), has blessed Americans who apply for their $40 converter box coupons (limit two per household) at www.dtv2009.gov. They will send you a coupon that can be used towards the purchase of government-approved eligible converter boxes. It’s not actually a coupon, but rather what appears to be a debit or gift card, complete with a 16 digit account number embossed on the front, along with a way cool hologram, and the obligatory high-coercivity magnetic stripe and three digit CVC2 code on the back. And it expires two to three months after you get it, so if you snooze, you loose.

What will you pay for a DTV converter box? They are generally available anywhere from $60.00 to well over $100, online and at retail stores. We think that manufacturers and retailers have taken advantage of the fact that the government is subsidizing these converters to the tune of $40 each, and they’ve decided to inflate their selling price. Low-end DVD players, which are substantially more complex and expensive to produce, sell for prices starting in the $30 range. If you are considering shelling out over $100 for a converter box, you might want to think about replacing your TV with a digital model instead. You won’t have to deal with two devices or two remote controls, and you’ll gain some functionality and ease of use by replacing your TV, VCR, Tivo and/or DVD recorder, instead of retrofitting your old set, especially if you plan to record programs off-air. One of the biggest limitations when using a atv-to-dtv converter box is that you can no longer select the channel using the tuner (or programming capability) of your TV, VCR, Tivo or DVD recorder. You are forced to select the channel via the converter box (“Series 3” Tivos have both ATSC and NTSC tuners.)

What would these DTV converters sell for, if it wasn’t for the government subsidy? We suspect they would be in the area of $25-35 each. Expect them to drop back to that price range once the subsidy program goes away, and replacement of older televisions with new digital receivers picks up more steam. Almost all new TVs sold today have digital tuners that do not require an analog-to-digital set-top converter box.

So while the government subsidy program has probably encouraged people to buy converter boxes, it has no doubt also inflated the prices of those boxes. It has also encouraged some people who would have simply replaced their television sets, to put off that purchase, and opt for a converter instead. Based on some of the reviews being posted by purchasers of these set-top converter boxes, there are a lot of people unhappy with the performance and quality of these products. It seems likely that many of them will decide to scrap their converter boxes in favor of a new TV. We think a better way of providing a subsidy for DTV to Americans would have been a one-time tax credit for the purchase of a converter box or new digital television set. It would have had less of an inflationary effect on retail prices, been less expensive to implement, and would have been less susceptible to abuse than the coupon program.

We don’t know about you, but we can’t wait to see those infomercials offering their snake oil in 1920 x 1080 high-def resolution, with Dolby 5.1 surround sound. So if you haven’t done so already, apply for your converter-box coupons, bring your TV viewing into the digital age, and help increase our trade deficit with China, all from the comfort of your web browser. Click here to follow our adventures as we shop for, purchase, install and compare the features and performance of set-top DTV converter boxes.

To paraphrase the late television legend Tom Snyder, “Fire up a colortini, sit back, relax, and watch the bits, now, as they fly through the air”. (There is a treasure trove of Tom Snyder’s interviews from The Tomorrow Show available on youtube.)

– Routing By Rumor

Tom Snyder (1936-2007)

photo: wkyc.com Cleveland/Akron, OH

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Filed under Business, China, Consumerism, Free Stuff, Home, Life, Money, Politics, Rebates, Retail, Retailers, Routing by Rumor, Shopping, Technology, TV Shows, Your Money

Still Waiting For Your Rebate Check From Eagle Technologies For Products Purchased At Micro Center ? Don’t Hold Your Breath !

WARNING TO CONSUMERS

WE RECOMMEND AGAINST PURCHASING PRODUCTS SOLD OR MARKETED BY THIS COMPANY

THEY HAVE A HISTORY OF DENYING VALID REBATE SUBMISSIONS AND/OR NOT PAYING VALID REBATE CLAIMS IN A TIMELY MANNER

We’ve written previously about the Micro Center chain of computer stores. We’ve also written about companies who play games with consumers when they try to claim a rebate. We like shopping at Micro Center because of their competitive prices and great selection, but we don’t like getting screwed when we try to get a rebate check for something we’ve purchased there. Micro Center needs to stop doing business with manufacturers who make it difficult or impossible to submit and receive rebates for products purchased at Micro Center. We consider a retailer’s advertisement of a product rebate to be a non-revocable contract with the purchaser, and we believe the courts will have the same opinion. Just as you expect to pay the advertised price, you expect to receive the advertised rebate in a reasonable amount of time and without unnecessary hassles.

Back in December 2007, we purchased two different Eagle Tech (Eagle Technologies) products at Micro Center, both of which offered rebates. We should have been suspicious, because the rebate offers had the most complicated and time consuming set of terms we’ve ever seen. To make matters worse, it’s pretty obvious that the people at Eagle Technologies do not have an impressive command of the English language, because the rebate form was full of grammatical errors and obviously writen by someone whose first language was probably Chinese. There are a lot of people in California. Couldn’t they find a native English speaker to proofread their rebate offer?

Here’s a verbatim example of what I’m speaking about…

We are not responsibility for any of non received check, Lost mail, Expired rebate check, Forgot deposit check issues. [sic], [sic], [sic], [sic] and [sic]” !!!

For those who have no idea what all the [sic]s mean, check out this article from Wikipedia.

Eagle Technologies / Eagle Tech is located in City of Industry, California. It’s an unusual place with an unusual name. (As an aside, if you visit the McDonald’s in City of Industry, you won’t be able to get a Big Mac or a Happy Meal. Here’s why!)

Eagle Tech requires you to first file your rebate claim online, then print out a form and mail it using an envelope that you paste their address label and barcode onto. Then you wait for several months while they “age” your claim (like it was a piece of cheese, I suppose), go thru several phases, including “submitted”, “received”, “approved”, “check printed”, etc. Are they joking? Is this a contest or a rebate offer?

Our rule of thumb is that the longer you have to wait, the more hoops you have to jump thru, and the more conditions in a rebate offer, the less likely it is to be legitimate, and the less likely you are to ever see a rebate check. We would certainly advise you not to make he same mistake we made, and to avoid Eagle Tech products, which include their CONSUS, ARION (or maybe it’s ORION), VOLTAS, FORTE, DRAGON and NEPTOR lines of computer products. Certainly don’t buy any of their products if you are depending on a hassle-free rebate experience.

It’s unfortunate that some retailers and manufacturers have to resort to these games. Certainly, there are many ethical companies that offer rebates that are easy to submit, and which are processed promptly. Sadly, Eagle Technologies does not appear to be one of them. So we wait… and hope. Will our rebates eventually arrive, or will Eagle Technologies declare bankruptcy first, as many companies that never fulfill rebates have done in the past, leaving their customers screwed and without recourse.

Here’s another Eagle Technologies customer’s horror story about their rebate experience. And here’s a forum string containing comments from customers who haven’t seen their Eagle Tech rebate checks.

And talk about long waits, that’s exactly what Eagle Technologies will have if they expect us to purchase any of their products again.

File this article under…

Eagle Tech Rebate Rebates

Eagle Tech Computer Rebate Rebates

Eagle Technology Rebate Rebates

Eagle Technologies Rebate Rebates

Micro Center Rebate Rebates

Rebate Fraud

Rebate Scams

Rebate Games

Deceptive Rebate Tactics

Rebate Hell

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Filed under Business, China, Consumerism, Free Stuff, Life, Money, Personal, Personal Tidbits, Rebates, Retail, Retailers, Routing by Rumor, Scams, Shopping, Technology, Your Money

$4.00 / Gallon Gasoline Is On It’s Way. Can You Say “Fill’er Up”?

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Tom’s Shell in Madison, Wisconsin (photographed 4/25/2001)

And you think things are tough now?

Just when you thought it was safe to pull into the gas station, the experts are predicting that oil prices are going to continue their upward climb.  Oil has been closing at new record highs almost every day lately.

Actually, we think that all Americans expect to see  $4.00 $5.00/ gallon gasoline pretty soon.  Well, all except President Bush. He hasn’t been in the loop when it comes to energy prices (or most anything else, apparently). Here’s a CNN video of the February 28, 2008 press conference where Mr. Bush expresses his utter bewilderment that the experts are predicting $4.00 / gallon gas. Kinda surprising, considering that he is from an oil family, from Texas, and the leader of the free world. Then again, we don’t think Mr. Bush has had to pull any of his limos up to the pump lately. To be fair, he did say he knew “it was high”. Speaking of being high…

We think he would have been just as surprised to hear that gas has been over $3.00 / gallon for some time already. Here’s the full transcript, (where you will also find a link to video) of the entire press conference.

We know you don’t get out much these days, George. What, with the war in Iraq, and having to give orders to shoot down spy satellites and save the world from deadly hydrazine and all. But you DO surf the Web, don’t you? You do read this blog, don’t you?

We were actually hoping the spy satellite would land in our backyard. Your car gets twice as good gas mileage on hydrazine as it does on unleaded premium. We would have dragged that sucker into the garage and pumped it’s tank dry.

If high gasoline prices cause you to run out of gas when far from home, here’s one solution.

Readers can do their part. Next time you’re at the gas station, snap a picture of the gas prices, and e-mail it to the President. Unfortunately, the White House contact page lists Vice President Dick Cheney’s e-mail address, but not the President’s. Send Mr. Cheney the photo, along with a note asking him to please wake up the President and show him the e-mail. While he’s at it, perhaps Mr. Cheney can have Al Gore pay Mr. Bush a visit, and teach him how to use the Internet. After all, he did invent it.

Next time your gas gauge says “empty”, don’t bother pulling in and asking for five or ten bucks worth of gas. They’ll laugh you right out of the station. Could the $100.00 fill-up be too far off? Gas is reportedly already above $4.00/gallon in some places, such as San Francisco. Once it tops $5.00, that $100.00 fill-up could be the new reality. Can Americans afford this? What about the impact this is having on the cost of consumer goods!

The economists at RoutingByRumor predict that you’ll see gasoline break the $4.00/gallon mark this summer. And if unforeseen problems arise in the Middle East, you could see it go much higher than that. When your economic stimulus check arrives, don’t forget to take it with you to the gas station. Just think of it as President Bush’s gift to “big oil”.

If you think inflation is out of control now, you ain’t seen nothin’ yet. See our recent post about what the price of oil is doing to the U.S. economy.

As Esso (or was it Humble Oil) used to say, “Happy Motoring”.

Hybrid and electric vehicles are looking better all the time.

– RoutingByRumor

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Filed under Automobile Manufacturers, Cars, Consumerism, Energy, Energy Conservation, Energy costs, Money, News, Politics, Rebates, Routing by Rumor, Shopping, The Economy, Your Money

CompUSA Goes Belly Up

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As Queen elequently put it, Another One Bites The Dust (watch the youtube video)

… and now, we can report that CompUSA bytes the dust.

Gee Whiz, I must be psychic or something. Just a few days ago, I posted a comment on this blog that CompUSA, a chain of computer stores in the United States, would soon bite the dust.I just stumbled across this article on Reuters and this article on cbsnews that confirms that CompUSA is on it’s way out. According to Reuters, the chain has been sold to the liquidation outfit Gordon Brothers. They will be closing the remaining 103 CompUSA stores in early 2008. No surprise, actually, since CompUSA closed most of it’s stores earlier this year. In recent years, CompUSA was controlled by Mexican businessman Carlos Slim Helu, reportedly the richest person on the planet, even wealthier than Bill Gates or Warren Buffet (see this Fortune article on Carlos Slim).

Have you ever seen a tree that was pruned to death? After a certain amount of pruning, the death of the tree is inevitable, because it can’t absorb enough sunlight to survive. So too with computer retailers (or any business, I suspect). I was quite certain that it was simply a matter of time before CompUSA was history. That time appears to be at hand.

I don’t have an MBA. I’m not an accountant or a retail executive. I’m a computer geek. But I know mismanagement when I see it, and CompUSA was a poster child for piss-poor management. I can’t tell you how many times I went into one of several local CompUSA stores to purchase sale items and came up empty-handed. So, I would walk over to one of the computer terminals that the sales staff used, and I would enter the SKU of the item I was looking for. Nine times out of ten, the computer showed that the store had stock on hand, sometimes a large quantity, but it was nowhere to be found. A few times, when I would pester one of the salespeople to go check the stockroom, they would usually find the item in the back, and bring one out for me. Sometimes, they wouldn’t want to bother because they did not have any confidence in the inventory quantities shown in the computer. Maybe that was just an excuse because they were lazy, or maybe their inventory tracking really was inaccurate. Sometimes they would say it was in the store somewhere, but they didn’t know where.

What a joke. I mean, if you go through the trouble of ordering inventory, printing up a sale circular, and shipping the item to your stores, but you don’t follow through and put the stuff out on your sales floor so it will sell, you don’t belong in business. This wasn’t a rare occurance. It was the status quo at CompUSA. I am confident that if you put me in charge of CompUSA, I could have done a better job. Who knows, maybe I could have saved them. I think part of the problem was that the chain had changed ownership years ago. When any business gets sold, especially if the new owners are investors and/or absentee owners who don’t know the business, look out. With some very rare exceptions, nobody will do as good a job running the business as the person or people that founded it. They don’t have the same passion. If the business fails, they’ll just move on to something else. There’s little devotion or emotional attachment, because it’s not their baby.

The sales people at CompUSA were rarely motivated. I suppose they didn’t earn enough to get real excited about their jobs. The store management was pitiful. There were a couple of employees at the CompUSA I frequented the most who did work hard, and I felt very badly for them losing their jobs when that store closed.

I recently posted this article about rebate scams. I had more than my share of problems with rebates on items I purchased at CompUSA. I complained a number of times, both to the CompUSA store where I purchased the items, and to their customer service phone number. There were many rebates on items I purchased at CompUSA that I got cheated out of, and never received.

You know, to be honest, CompUSA was never my favorite computer store anyway. I preferred the Computer City chain, which closed circa 1998 or 1999, if memory serves me correctly. Computer City was purchased by CompUSA. They closed some Computer City stores and turned the rest into CompUSA stores. Egghead Software was also pretty good, although they operated much smaller stores and did not carry a lot of hardware. Today, Egghead is strictly an online retailer. The newest chain to open in my neck of the woods is Micro Center, which started out in Ohio, and has expanded to almost two dozen stores. Micro Center is a pretty cool store. It looks like there are a lot more good deals to be had there, and they claim that they have prices as good as you’ll find on the web. They sell brand name (Dell, IBM, Compaq, etc.) brown-box “refurbished” computer systems alongside their big selection of new systems. They cater to system builders and gamers and have a pretty large Apple department. They also have a nice computer book and magazine section, nearly as large as you’ll find at Barnes & Noble or Borders Books. On several occasions I’ve picked up some bargain-priced (not-current edition) but otherwise new books for under five bucks each. They even have free Internet access kiosks, so you can comparison shop without leaving the store! There’s little in the way of computer hardware that they don’t carry. If there’s a Micro Center near you, you have little reason left to buy stuff online.

Life goes on. Other computer retailers will come and go, to be sure. Perhaps my opinion of CompUSA will mellow as the memories fade to black.

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eBay – A Buyer’s Market or a Seller’s Market?

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I love eBay. I hate eBay. I’ve used eBay since 1999.

If you are looking for a hard to find, vintage, used, discontinued or rare item, eBay is the first place to look. If you want to find the latest tech gadget at less than retail, check eBay first. A lot of people won’t even consider buying something online or at a “brick-and-mortar” local retailer without checking the price on eBay first.

With all those “Get Rich Selling On eBay” books and seminars out there, you would think everybody could quit their day job and watch the money pour in when they become an eBay seller. Don’t bet on it. Most eBay sellers hardly make enough to make it worthwhile. When you factor in the amount of time you have to invest to set up an auction, respond to buyer’s questions, deal with deadbeat bidders, and pack & ship the item, and the cost of eBay’s and PayPal’s fees, it’s hard to make a profit. Meg Whitman, eBay’s CEO, and eBay’s stockholders have made fortunes on eBay. If you want to make money on eBay, buy some eBay stock rather than trying to sell on eBay.

eBay has incrementally introduced new features over time that makes it a more secure and useful platform, but eBay has also devolved into an uneven playing field that benefits few but eBay itself. In category after category, you have sellers selling items for pennies, but charging outrageous amounts for “shipping”. Even the majority of sellers who aren’t selling through “Buy-It-Now” auctions for $0.01 are still inflating their shipping charges to try and make some money. This is especially true with sellers from countries like Chins, which have become a larger and larger presence on eBay.

I’ve seen it over and over again… For example, very small items selling for a few pennies, but with a $29.00 shipping fee. Shipping that will cost the seller anywhere from a first-class postage stamp to perhaps a dollar or two. Few buyers or sellers seem to care much about the practice, and eBay is certainly not complaining. There is so much competition between sellers that they all have to resort to this tactic. eBay actually helps sellers inflate their shipping fees by allowing them to build their margin into eBay’s auction shipping charge calculator.

Why is this happening? eBay does not charge a commission (final-value fee) for shipping charges assessed by a seller, so sellers shift all or most of an item’s cost to the shipping fee. eBay appears to have made no serious attempt to curb this practice. Why? I think it’s because eBay also owns PayPal, the bank thru which the vast majority of eBay transactions are paid for. If eBay doesn’t get their cut thru auction fees, it will still earn it’s money through PayPal fees.

If you’re looking for a bargain on the latest high-tech gadget, I doubt you’ll find a bargain on eBay. Items that are in demand usually sell for prices close to retail, especially when you add in the “shipping” charge. Most eBay sellers will not accept returns or issue refunds. Many manufacturers will not honor rebates or warranties on items purchased thru online auctions. While most sellers do a good job of describing an item and it’s condition, some do not. Some are deceptive.

For items like used or out-of-print books or DVDs, eBay is great, and there are many bargains available. I think eBay has done more for the environment by keeping stuff out of landfills than any recycling program has ever done. If you want to get rid of it, don’t throw it out. Put it on eBay.

One of eBay’s strengths is it’s feedback system. I like the very democratic rating system, where buyers get to rate and comment on sellers and vice versa. It encourages people to treat other eBayers they deal with fairly. It also holds you hostage to some extent. You have to avoid giving negative feedback to someone you’ve dealt with, even if it is justified, for fear of receiving retaliatory negative feedback. The feedback system is a double-edged sword.

…When I continue, I’ll discuss some of the issues I’ve touched on in greater detail.

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Filed under China, Consumerism, ebay, Employment, Environment, Home, Life, Money, Movies, Rebates, Retail, Retailers, Scams, Shopping, Technology, The Planet

Still Waiting For That Rebate Check? Don’t Hold Your Breath If Staples, Symantec or Parago Are Involved !

I’m a sucker for almost anything that comes with the promise of a rebate, particularly technology products. The phrase “FREE AFTER REBATE” is music to my ears, even though this is never quite true when you take into consideration the sales tax, postage, and other costs associated with filing the rebate claim.

Rebates were the one saving grace for a retailer that I thought was otherwise worthless, CompUSA. Most of the CompUSA stores in the USA have closed within the past year, and  I suspect they will disappear completely in short order. The funny thing is, I’ve never come across anyone who was sorry that a CompUSA store closed. I’ll usually hear comments like “I can’t believe they lasted as long as they did”.

I’ve been running into a problem receiving rebates I’ve qualified for on a number of products I’ve purchased at Staples stores recently. Most often, they have been rebates on software titles from Symantec. The common thread with all of the rebates I’ve had trouble getting my rebate checks for is that they are fulfilled by a company called Parago. Quite frankly, I have a pretty good nose for this stuff, and I smell a scam. It wasn’t always this way. In the past, Symantec rebate checks always arrived quickly and without a problem. I could always depend on receiving my check within a few weeks, which was much quicker than many other manufacturer’s rebates, but things have changed.

I meticulously follow the requirements of each rebate offer. I’ll include the UPC barcode, proof-of-purchase seal (if applicable), cash register receipts, product registration requirements, proof that I qualify for rebates available only to owners of previous versions or competitive products, etc, etc. I double and triple check everything, including the offer expiration date. Then I make copies of everything I submit. I double check the postage and the addresses.

At least half of the time, I’ll get a postcard from Parago telling me that I did not qualify for the rebate, listing one or more bogus reasons. Funny, but when I check my copy of the material I submitted, I do qualify for the rebate, and I’ve submitted whatever it is that they say was missing from my submission.

Read this: “The Great Rebate Runaround”, published by Businessweek.

Here’s a story about Parago posted by another consumer, who has had the same experience with Parago.

Here’s another.

I’ll call the phone number listed on the postcard, and I’m forced to navigate thru several menus before I can press the appropriate key and speak to a real live human being (or wait on hold until one is available).

Each time I’ve called about a rebate submission that was rejected,  the person taking my  call will take a few seconds to look over whatever records they have on their computer screen, and then announce that it was their mistake, telling me I will receive my rebate in a few weeks. Sure enough, about a month later, my rebate arrives.

What’s going on here? Let me take a guess. I think that either the retailer, in these cases Staples, or the manufacturer, in these cases usually Symantec, or more likely the rebate processor, which in every case has been Parago, has figured out how to make money. Conveniently manufacture a bogus reason to disqualify the rebate claim, and hope that the customer doesn’t pursue the matter. If the customer does complain, just say “oops, our mistake… so sorry… we’ll get that check out to you in a few weeks”. If this is indeed what is happening, it’s fraud, and it’s a crime. Could you imagine how much money is at stake if even a small percentage of the rebate submissions never get paid out? And this is on top of the fact that most rebates are never claimed by consumers to begin with.

Here’s an article on zdnet.com, that discusses the fact that Parago has actually patented ways to reduce the number of rebates it has to pay out to consumers. This is disgusting. It’s like being admitted to a hospital that has patented ways of killing it’s patients. It’s like a restaurant that tries to give their customers an empty plate. You can’t get away with it for very long. I think the fulfillment industry is going to destroy itself, just as the telemarketing industry did, by abusing the public to the point that legislation was passed which created the U.S. Government’s Do-Not-Call list. Americans who were sick and tired of being harassed by telemarketers have placed almost 150 million phone numbers on the DNC Registry. Telemarketers killed the goose that laid the golden egg. They have nobody to blame but themselves. The government recently decided to make DNC list registrations permanent. Good !

It appears to me that job #1 at rebate processors like Parago is not to get your rebate check to you quickly. Rather, their first and highest priority seems to be finding any way possible to avoid honoring a rebate offer. Who in their right mind would want to do business with a company whose goal, it seems,  is to cheat you out of what they owe you? If a lot of companies offering rebates were being honest with their customers, I think their products would carry stickers such as this…

“$50 MAIL-IN REBATE, BUT WE WILL DO EVERYTHING WE CAN TO ENSURE THAT YOU WON’T QUALIFY FOR THE REBATE”.

Manufacturers or retailers who employ rebate processors that attempt to prevent as many consumers as possible from collecting their rebates are shortsighted indeed. It’s not the consumer who stands to be hurt the most by these practices. It’s the manufacturers themselves, and the rebate fulfillment companies who are destroying the consumer’s trust in rebate promotions. Successful companies don’t have to pinch their customers to make a profit.  Throwing up as many barriers as you can, forcing your customer to jump thru hoops and clear hurdles before they will get their rebate is simply not good business.  These types of practices are a sign of greed or desperation, by companies that are willing to sacrifice future income and goodwill in the name of a fast buck.  It’s simply not the way an ethical company operates.

Now I know what you’re saying. You’re saying “why should we believe anything that RoutingByRumor says. Who the hell is RoutingByRumor anyway?” In that case, don’t take my word for it. Parago holds at least five U.S. patents, which can be viewed here. Among them is Patent # 7,146,328, which contains a number of claims, including the following…

“Rebates offer cash back to consumers who fulfill a set of requirements after purchasing a product bearing a rebate. By requiring post-purchase activities, the rebate offerer attempts to reduce the number of successful rebate claimants. Breakage occurs when a product bearing a rebate is sold, but the rebate is not successfully claimed.”

“Breakage refers to any event that prevents a rebate transaction from being completed, for example, denying based on bad verification materials such as receipts or UPC symbols, denying based on improper purchase dates or purchase price, or slippage from checks issued but not cashed.”

The patent also boasts that Parago’s system “provides opportunities for breakage”. Based on my experiences with Parago, I’m surprised it doesn’t say that their system “guarantees that breakage will occur”.

I have sent complaints to both Staples and Symantec about the difficulties I’ve had with rebates processed by Parago. Sadly, but not surprisingly, neither Staples or Symantec responded to my complaints. My guess is that retailers like Staples, and their vendors, such as Symantec, actually want Parago to mail out as few rebate checks as possible. If this is not the case, then they need to contract with a different fulfillment company. In my opinion, if companies like Staples and Symantec are involved in this practice in an attempt to avoid having to pay valid rebate claims, they should be prosecuted. I believe that a rebate offer is a contract between the buyer and the party offering the rebate. A class action lawsuit might be in order. Perhaps it’s time to stop buying products offering rebates.

If Parago CEO Juli Spottiswood (see nbpca article), Staples CEO Ron Sargent (see Forbes article), or Symantec CEO John Thompson (see Forbes article) wish to comment on this article, RoutingByRumor will post their comments here. If you click on the links to the Forbes articles above, you can see the incredible compensation these CEOs receive, made possible by your purchases and by all those rebates you thought you were getting, but never received.

If you have experienced this or similar problems trying to collect a rebate, post the details of your experience here, or e-mail them to me. If I receive a response to my complaints to Staples or Symantec, I will post the details, but I’m not holding my breath.

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