Consumer Law

U.S. News Article on Rebates

By Jeff Sovern

U.S. News and World Reports has an article on rebates, titled "Why Shoppers Love to Hate Rebates" that gives both sides of the debate.  A self-serving excerpt:

Jim Wohlever, chief executive at Young America, explains that companies could not afford to offer as many rebates if everyone took advantage of them. Requiring effort on the part of customers separates those who will make a purchase only if they can get the refund from those who are willing to pay more. Plus, it allows retailers to maximize their profits by selling to both groups at different prices. "It's a price segmentation strategy," Wohlever says.

Or it may just be a paperwork-tolerance segmentation strategy. "It may only separate those who can better fill out forms from those who can't, or those who have more time to complete forms from those who don't," says Sovern, who questions the fairness of rebates.

Full post as published by CL&P Blog on January 22, 2008 (boomark / email).