The Trick to Rebates  
   
01/31/2009

I remember after purchasing a computer I went to mail in my rebate only to discover that I had discarded the boxes, which contained the necessary UPC code I needed to claim my rebate. I had let my father dump the boxes in essentially another state so I lost about $400 on that one. In hopes of protecting other consumers from a similar scenario, the Better Business Bureau of the Southwest (BBBSW) has some suggestions to make sure you get your rebate and how.
 
Companies offer billions in discount and rebate coupons every year - on everything from toothbrushes to digital cameras - but not every consumer makes the effort to collect. According to the Promotional Marketing Association, the average redemption rate is about one in five. Some consumers who go through the redemption process miss the filing deadline or submit insufficient information. Those who do succeed in claiming their rebates can save hundreds of dollars.
 
In the October 2006 Michigan Attorney General's Consumer Alert, Mike Cox states: “Many long-term rebate or voucher programs are complicated operations. The process starts with an organization, sometimes a trust, soliciting merchants to join their program. The merchants are told that they can save advertising costs and increase their business by participating in this voucher/rebate program. Participating merchants are told to make payments into the trust based on the number of vouchers given to consumers. Merchants are told the trust will have enough money to pay all of the vouchers they receive because by the time the rebate period expires, sometimes after three or four years, most of the consumers will forget to send in their vouchers to get their money. Thus, the trust will be enough to cover the few consumers who do remember to submit their voucher forms many years later.”
 
Mike Cox goes on to further explain that when it is time for the consumer to submit their rebates or vouchers according to the rules of the rebate program, the consumer submits their completed forms to the trust administrator. If the program works as advertised, the merchant increases their business by participating in the voucher program and consumers get hundreds, if not thousands of dollars back when they follow the program rules. The problem is these types of programs may not work as advertised.
 
If you are among the shoppers enticed to purchase goods offering rebates, the BBBSW suggests that you review rebate offers as soon as possible and note expiration dates. You may be approaching the filing deadline. In most cases, rebate paperwork must be sent to the manufacturer or retailer within 30 days of the product purchase.
 
Rebate offers typically require consumers to mail the requested documentation to a redemption address, but some retailers offer the opportunity to file for a rebate online. Check the company website if you have rebate questions. However, be wary that the company's website may not contain all the information that is needed.
 
The documentation required usually includes the original sales receipt, UPC code (it sometimes must be cut from the product package), rebate certificate, and the customer's name, address and telephone number or e-mail address. Consumers generally receive their rebates within 12 weeks of submitting their documentation.
To help assure a successful rebate claim, the BBBSW encourages consumers to:
  • Beware of advertisements exclaiming you can be refunded part or all of the purchase price for a big-ticket good or service, such as swimming pools, cars, or cosmetic surgery. If it sounds too good to be true, it probably is.
  • If you cannot afford to purchase the item without the rebate promised, do not purchase the item. Even if the rebate program is legitimate and works as advertised, you may misplace any required documentation or forget to submit the rebate entirely in the sometimes long interval between your purchase and the time you can submit your rebate voucher.
  • If you have purchased a good or service that is part of a long-term rebate program and it comes time for you to submit your rebate voucher, beware of identity theft. Some long-term rebate programs ask you to submit copies of your driver's license, passport, and recent utility bills to prove your identity. Providing copies of these documents to unknown individuals puts you at a higher risk of identity theft. If you send copies of these documents to obtain your rebate, make sure you monitor your credit reports and account statements very closely.
  • Follow the instructions exactly as detailed on the rebate form and provide all requested documentation.
  • Consider sending your rebate paperwork via certified mail if you want to secure proof that you mailed your form by the required deadline.
  • Make a copy of all paperwork that you submit when applying for your rebate. It is the only record you will have of the transaction if anything goes wrong.
  • Contact the company if the rebate does not arrive within the time promised. According to the Federal Trade Commission, companies are required by law to send rebates within the time frame promised, or if no time is specified, within a "reasonable" amount of time.
  • If the rebate never arrives or arrives late, consider filing a complaint with the BBBSW by either accessing our website or by contacting us at (800) 873-2224, or (505) 346-0110 (in Albuquerque), or (505) 326-6501 (in Farmington), or (970) 242-2512 (in Grand Junction).