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Florida AG Sues TigerDirect For 'Continually Blaming Customers' For Rebate Delays

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Waiting for a rebate from TigerDirect? Good luck with that. In a suit filed last Friday, Florida Attorney General Bill McCollum is charging the company with, among other things, promising customers that rebates would arrive in about 8-10 weeks of submission, when in fact "a vast number of customers experienced delays ranging from one to more than eight months, before receiving their promised rebates, if at all." The suit also charges TigerDirect with engaging in "deceptive and unfair trade practices."

The suit goes on to quote a former employee as confirming that:

...control of rebate processing ws so poor, that many UPC bar codes ended up on the floor to be later discarded "in the garbage" and the consumer's rebate "denied." This resulted in the Defendants' computer systems frequently indicating that "no supporting documentation" had been received with the rebate application.

The AG complaint also says that "at times, batches of checks numbering in the thousands were never printed and/or mailed."

TigerDirect and its sister companies under the Systemax umbrella (you know, the reanimated CircuitCity.com and what's left of CompUSA) are no strangers to problems sending out rebates. In its earlier incarnation, the FTC handed CompUSA the dubious honor of becoming the first retailer to be required by law to actually fulfill manufacturer-promised rebates.

TigerDirect clearly learned from that experience, though the lesson it took away isn't the one we'd recommend. McCollum's complaint charges that the company's "rebate program was convoluted and designed to wear down the customer to the point that the consumer would finally give up their right to the rebate, thereby resulting in an improper windfall to the Defendant."

If TigerDirect loses the case, it could be forced to hand over some of that windfall to the customers it burned, but don't count on it. Most rebate suits end with settlements that give customers a pittance, require some of the same documentation that was needed to apply for the rebate in the first place, and, yeah, take a lot more than 8-10 weeks to process.

Attorney General Sues Company for Cheating Consumers Out of Rebates [Office of the Florida Attorney General]
Complaint for Injunctive Relief, Damages, Civil Penalties and Other Equitable Relief [Office of the Florida Attorney General]

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This makes sense as you now need to wait in line 8-10 weeks to have your receipt checked before being allowed to leave the store.

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As screwed up as some of these rebates are, the truth is many people just DONT follow the instructions. I worked at CompUSA and not once did I not recieve a rebate I mailed in/filed electronically for.


I did however help dozens, if not hundreds, of people go over the info to get the rebate. Most wouldnt send in the UPC (didnt know what a UPC was), didnt send in the rebate form, wrote illegiably, didnt know what a model# was, didnt know what a serial# was etc.


Now, even before I worked there, I had filled out rebate forms, and got my money, its just a matter of knowing what info was needed, and being patient.


We had employees at the store whols sole job was to help people fill out rebate forms. They would walk them through filling things out, make them copies of everything and show them where to mail it to. I never once heard of somone who sent in everything properly not getting a rebate.


Now, the argument can be made that the forms are too complex. Thats crap. They ask for your name, address, contact info, model#of the item you purchased (which is clearly labled as model# on like 99% of things) serial# of the item (marked as s/n or serial# on almost everything) and the original reciept and UPC. People would try sending copies and would get denied.


The thing that caught most people up was trying too file for 3-5 rebates on package deals and needing the reciept for all of them. In this case, we needed to print them multiple copies of the reciept (not xerox copies, but from the register copies) and we did. The registers were programed to print all rebate forms and reciepts when they applied. Most customers throw away the "extra" reciepts becasue it looks like so much paper, then get pissed. So we would reprint when they came in.


So yes, rebates can be a pain, but when done right, they do usually work.

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Epic OnRebate fail:

[www.onrebate.com]

"Our website it is unavailable."

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I bet if the credit card companies made it clear that the merchant receives payment for the goods once a rebate is received by the consumer, rebates would be done in hours. Let's see Tiger Direct wait 8-10 weeks for payment.

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@xtc46 - thinksmarter on twitter: There was an awesome rebate offer with Windows 95 that included a free camera, memory card and photo editing software. After plunking down $200 for those items, I was promptly shipped the camera and memory card. The software, which I didn't want in the first place, was some $19.99 piece of crap that I'd never heard of. I called to find out where it was. "On its way, be there in two weeks." Two weeks later, nothing. Call again. "Lost your order. It'll be there in two weeks." Nothing. Now I'm starting to get close to the end of the rebate period. Call again, explaining that I'm getting close to the end of the rebate period and they'd better send me the software. "On its way." I got it the day after the rebate ended. I shipped off the UPCs and all the documentation, and was subsequently denied my rebate because my paperwork arrived after the deadline.

Screw rebates. In the ear. Never again.

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If you're still in school, see if your university has an MSDN Academic Alliance partnership with Microsoft. Usually offers operating systems (XP, Vista, 7), Office, and developer tools (Visual Studio, Visio, SourceSafe) for free.

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@Red_Flag: Gah. Mispost. My apologies. Was supposed to go to Lifehacker.

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@xtc46 - thinksmarter on twitter: The story says very clearly that they were throwing away the UPC codes customers sent in.

Congratulations on being lucky and all, but your experience isn't universal.

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This has been a common theme for Tiger Direct for years now, and its disappointing that it's taken so long for something to be done. In the deal hunting circles it's well known that you don't ever plan on getting a TD rebate when factoring if a deal is good or not.

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Doesn't TigetDirect have to get paid from the manufacture before they pay you. Cause if they do, it wouldn't make sense for them to pay you without first getting paid from the manufacture themselves.
Everyone needs to get rid of mail in rebates all together, and just have instant rebates.

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I have gotten two things from them in the last year with rebates... and received them fine! Make copies of everything you send out as a fail safe. If you ever have a problem, the store I visit says to come in with all the proof and they would take care of me.

Sounds like a wasteful law suit.

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@xtc46 - thinksmarter on twitter: I worked for OfficeMax for many years and agree, most people just don't follow the directions.

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Maytag did the same thing to me. After delaying my rebate for over two years, the last thing I was able to get out of them was "your rebate request has expired and is no longer valid". Last time I buy anything built by Maytag. Fool me once.....

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@Thaddeus: I always have and always will simply skip the receipt check with a "No Thanks" as I exit. Sure, they warn me to keep the receipt out, but I shove it deep in a pocket as I leave the register. The local police dept is quite conveniently located only about a mile away should anything happen. :)

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I have had trouble with tiger direct and their rebates before. I had a $100 rebate denied for lack of documentation. They claimed I had failed to attach the UPC. However, I know I did attach it and in fact stapled it to the rebate form. When I called they told me I would have to send in the UPC again, which makes no sense since I had cut it out and sent it to them. Needless to say I got screwed.

I learned two valuable lessons from that experience 1) avoid rebates 2) when you cant avoid a rebate make a xerox copy of all rebate forms and UPC's before sending them in.

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@xtc46 - thinksmarter on twitter: I sent in a rebate, after performing my usual ritual of photocopying all the materials and sending the envelope return-receipt-requested.

After the allotted time period passed with no check (though I did receive my return receipt), I called them up and was told that my application was missing part of the required materials. When I told them I had photocopies of the completed forms and a return-receipt showing they received it, I was put on hold and ten minutes later they told me they found what they needed.

I received the check soon after.

Interpret that as you wish.

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I never got a $7 rebate on CDRs from them years ago & neither did anyone else that I knew that sent for it.

It's time to either outlaw rebates, make them instant at the register or require them to be sent in online with just a confirmation code from the receipt.

And the one place that I always get my rebates back is Menard's!
I can pile a dozen rebate forms & the rebate receipts in a single envelope & I always have gotten it back. Maybe it's because it's sent to Wisconsin where people actually can read, write & speak English, instead of shipping them to Mexico where they can't read or write in any language!

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Actually, this is, unfortunately, a common practice with rebates. I remember reading several years ago either in a magazine or on the internet about how the companies use rebates to boost profits. This was provided by someone that had worked in a rebate department of a company.

Typical calculations that companies have uses to determine how many rebates they should fulfill can be as follows: On average, at most half of the people that purchase a rebate product ever bother with the rebate in the first place, and even then only have of the ones that do a rebate follow the instructions properly. Therefore, at most, they expect to pay out only 25% of the promised rebates for the sales of each product with a rebate. If there's more than 25% done properly, they'll deny it and make false claims of not receiving it or not having all the requirements or it being outdated or some BS.

What's worse now is that they'll no longer accept photocopies of your receipt or the barcode, so you can only make 1 attempt at getting a receipt and you often have no recourse if they deny you, or if you have to make a return, there's a good chance you won't be getting your money back because you defaced the box.

Talk about a scam.

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i have always gotten back rebates that are filled out correctly.


i usually forget about them, but LOVE IT when i get a check in the mail.


when i bought my washer/dryer set i got a free year of tide hd via mail rebate and getting a coupon book is almost as good as a check. fyi, the "year's worth" lasts a lot longer for me since i live alone.

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@Red_Flag: ...

I understand replying to the wrong comment...

But how does one mispost in the wrong blog???

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I was burned by tiger direct about 4 years ago now, and i never went back. They have always been horrible about rebates. My biggest problem wasn't the time it took for processing. Tiger direct would list rebates that you couldn't use. For example i bought a printer with two different rebates. I couldn't use one of the rebates b/c you need to also buy a new HP computer, which was in very very small print on the rebate pdf. The tiger direct page made no mention you need to buy a new pc. I even emailed tiger direct, they didn't care enough to write me back, so i didn't care enough to buy anything from them again.

I am now a very loyal NewEgg.com customer.

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Rebates are not worth the hassle. I had filled out a form for a $20 rebate within the time period, included the UPC code; in short, did everything required, including photocopying everything. To send it by registered mail would have eaten up about half the rebate, so I didn't bother.
If you guessed that the company claimed they never received the forms, you were correct. I faxed the photocopied paperwork, got the runaround and transferred to a few different departments, all promising to look into it. Finally I gave up, knowing they would never honor the rebate and had no intention of doing so.
I prefer dealing with retailers who avoid the mail-in rebate when possible. If there is a manufacturer's rebate, I calculate the cost without rebate. So if a $100 item has a $20 manufacturer's rebate, I would instead buy a similar item from a retailer offering it at $90 with no rebate.

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@amejr999: Onrebate.com aka onrebate.biz is now operating their rebate house at worldwiderebates.com.

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Screw TigerDirect--support Newegg. They don't rely nearly entirely on rebates to get a respectable price.

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It's just another revenue stream, isn't it? As Ballistic90 says, the vendor is clearly not budgetting on having to actually reduce the cost of the item by the amount of the rebate over a set of customers.
Luckily we just don't have this in the UK - I don't know whether it's not permitted or just that it hasn't worked. I'll bet it's been tried, though.

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Rebates, like store coupons, require that the buyer abide by certain T&Cs that are apart of the promotion. Generally speaking these terms are; register (name address,etc, attach the UPC (original or copy) and lastly include the proof of purchase (invoice, packing slip, etc).


Now with all these 3 components - mail the package to the processing companies PO box, and provided you followed the rules - expect to be apid in 8-10 weeks.


My wife and i have been buying from Tiger for years - and out of the 100s of products we purchased for our business - we only once had any "issues" with a rebate, the they fixed the problem immediatley and paid us the rebate check.

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I've received my Tiger Direct rebates just fine. Granted, I bought the items in late May and just now am receiving the rebate, but I got them. I'd agree that half the time it's folks either not including the UPC or other information, and just not reading to see what is needed.

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In the year 2009, it makes no sense at all that ANY rebate would take 8-10 weeks to process and pay. NONE.


While that may be a standard window printed on most rebate forms, it seems designed in hopes the consumer will forget.


You get the rebate claim, you validate the claim, you cut the check, you may the check... TWO WEEKS TOPS.


A law making rebate processors pay in 14 business days would get their attention pronto.

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@xtc46 - thinksmarter on twitter:


I have NEVER not been paid a rebate, ever. Why? I read the directions and keep a copy of everything I send with the date mailed.


If the rebate does not arrive, I contact them. If they claim I didn't do something write, I offered to fax proof I did. That usually gets me paid pretty fast.


In the 2 instances where my money still did not come, a quick letter to the BBB got me paid.


I agree, however, that idiots that can't follow directions should not get a dime.

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Still waiting on my rebate from a 17 inch LCD I bought at Tiger around 6 years ago. I'm not holding my breath ...

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Staples does tricks like promising $$ rebates and when you finally get them, they are $$ coupons for purchases at Staples. Sears may offer rebates, but they came up with a strange excuse for not honoring my last purchase. This was a $50 delivery rebate for a Bosch dishwasher, which they denied because of the date of their delivery. I had sent in the coupon rebate weeks before the expiration of the rebate special. No more Sears purchases for me. On a kind note, have twice put in for large rebate checks from Panasonic and always within a few weeks checks arrive from somewhere in Arizona. Had no problem with a Michelin tire rebate either. They said it would take up to eight weeks, but eight weeks later the $70 check came. Have gotten several $200+ rebates from Dell computer over the years. Takes a few weeks, but all promises honored.

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@_NARC_: I confess that I never factor rebates into deciding whether a deal is good or not. I've just been burned waaaay too many times to bother. It doesn't entice me at all.


Oh, and I did provide all the documentation the companies asked for, and write legibly, just in case anyone thinks I fall into the column mentioned by that poster a few threads above.

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@josh.hofer: Doesn't sound wasteful to me. You've had good experiences, and your local retailer takes care of you if there are problems. Good on ya for that. But don't dismiss the thousands (THOUSANDS) of legitimate complaints from consumers just like you who weren't so lucky. TigerDirect is well known for these practices; they're only now being faced with possible legal consequences.

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@xtc46 - thinksmarter on twitter:

You are wrong. I was one of the people in direct contact with the FTC lawyer about your company and its rebates before CompUSA finally got sued by the FTC.

CompUSA was absolutely one of the worst offenders in not fulfilling consumer rebates. Even worse, what finally got the FTC to act was that CompUSA continued to advertise rebates for manufacturers it knew were not paying its rebates. That's called "fraudulent inducement" and its what really got the FTC's attention.

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@spanky: Im sure there are paper work mess ups and stuff like that may happen, but Its an exception to the rule typically. We always stapled items together so they wouldnt get lost etc (which many reciept forms ask you to do) to prevent this kind of thing, but even then, giving the rebate places a call fixed issues with lost items. It's not luck considering how many people I have seen get their rebates compared to those who didnt. In the cases of people who didnt, I was always able to find out why, and 99%+ of the time it was the persons fault, yea, there are times where the ball gets dropped, but its far more rare than the submitter being wrong.

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I used to like TigerDirect, but the whole rebate thing has turned me off. And now they've rebranded their stores as CompUSA's and are acting like the old CompUSA's, which is not a good thing. There is a reason ComUSA went under.

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It's about time!

Tiger Direct is one of the worst offenders in not fulfilling consumer rebates. They are "legendary" on shopping forums for their absolute incorrigibility in this area. Even worse, some toady from Tiger Direct would inevitably show up to defend TD during a discussion. Then about 50 people would post saying "where is my rebate from blah blah blah????"

Then the toady would quietly disappear. I saw this happen so many times. This company has NO shame. NO humility. They just keep doing the same thing.

I predict they will keep doing it even after the AG settles. It is going to take a very serious fine and consent agreement to get this company to change its corporate culture.

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"Most rebate suits end with settlements that give customers a pittance"

I wouldn't agree with this, Marc. Not in the case of an AG suit. That's pretty serious hoodoo.

Although in the case of TD, as I say above, it's going to take a lot of get them to change...

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@xtc46 - thinksmarter on twitter:
I'm not sure I'm going to listen to a lecture on "following the directions" from somebody who can't master that pesky apostrophe, nor the "i before e except after c" rule.

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@Colonel Jack O'Neill: It's not a customers job to enforce Tigers contracts with its vendors. If Tigers vendors won't pay, that is Tigers problem, not the customers. If the rebate is offered by Tiger instead of the manufacturer, then Tiger is on the hook to pay, and to do so promptly.

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@xtc46 - thinksmarter on twitter: I think it's a hard sell to say that the rebate forms were not too complex when you have to dedicate full-time employees to assisting customers with filling them out.

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I know I make copies of any rebate I turn in. I have been lucky with my rebates, I guess. (BTW, I go to Fry's Electronics for my stuff.)

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The economy's bad, offer to buy it today if they throw in the rebate. Might not work on the box of cds but it will work on the digital SLR camera. You'll never know what you can get unless you ask nicely.

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@SybilDisobedience: Agreed - rebates are great ways to make the product look cheap, but in reality, they know most people won't be filling out the forms. When I purchased this computer (everything from TD, actually) in parts, the rebate total came to something like $60. I figured the 3.3% discount wasn't a whole lot, and I was still saving money over other competing websites.

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@ballistic90: Yep happened to me with Kohls and a freaking Kitchen Aid mixer with a 50 dollar gift card. Last big puchase I've made at Kohls other than some 10 dollar shirts here and there.

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@Ratty: There are far too many rebate-pricing shenanigans at the egg though. So long as they're involved and advertising the rebates, they're responsible.

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TigerDirect still owes me a $15 rebate from 2002 - despite having done everything properly. I think I've learned my lesson though - I've spend probably $3000 at Newegg since then.

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@twophrasebark: I came in here to say pretty much the exact same thing.

"Buyer Beware" is nowhere more true than on the Internet. Do your homework, and you'll find hundreds if not thousands of complaints against Tiger Direct for questionable business practices, including the Rebate disqualification scam.

I have never and will never buy from Tiger Direct. They are on a short list of resellers that have lost my business forever. I won't ever bother going back to them because there are enough vendors that stand behind their reputation and care enough to do the right thing - like NewEgg.