Manufacturers offer discounts on their products to entice buyers to buy their products. By offering a mail-in rebate, manufacturers do everything they can to reduce the dollar amounts paid. They are well aware that half of the consumers who buy their products do not benefit from a rebate. For that reason, it is not surprising that many manufacturers offer discounts on their products to buyers.

When do factory mail-in rebates become fraud?

Refunds become fraudulent when they include complex submission rules, time limits for mailing the rebate, or lame excuses for denying rebate requests. Companies running manufacturer discount promotions compete for the highest rejection rate and include the complexity of the rules as an excuse why they should be chosen to manage a product discount offer. The manufacturer may have initiated refund requests in good faith, but may be tempted to find ways to limit the redemption process. When someone makes redemption offers but creates so many obstacles and rules to follow that redemption is unlikely, they are walking a fine line between good business practice and fraud.

How to avoid refund fraud

1. Read the fine print. Before you buy a deeply discounted item, read the form carefully to make sure you qualify. Sometimes a manufacturer will prolong delivery of your purchase long enough to ensure that you no longer qualify. You will most likely receive what you purchased, but your refund will no longer be valid.
2. Choose the easiest discounts. If the retailer allows you to claim your refund online, you may get it faster. Some of them help you find the proper paperwork to send them in and then track your refund. Another advantage is a retailer that provides you with a copy of the sales receipt and form at the checkout to help you get your refund. Electronics stores like Best Buy and Fry’s have been known to do this.
3. Complete your rebate form in its entirety. If you do not provide the necessary information, your refund request will be denied. Please read the form carefully and verify that it is accurate before submitting it. DO NOT miss the mailing deadline.
4. Use the correct UPC code. Some product boxes have multiple UPC codes and submitting an incorrect one may result in your application being denied. If you are not sure which UPC to submit, please call the customer service number to determine the correct one. Most rebate offers require you to submit the original UPC code so that you cannot return the product and collect the rebate. Be sure to follow the refund instructions regarding the UPC code.
5. Make copies of your completed reimbursement forms. Make copies of your receipts and UPC codes to help you prove that you submitted your rebate request. If the refund involves a large amount of money, request a delivery confirmation from the postal service so that if there is a dispute regarding your request, you can prove that your refund was received on time.
6. Follow up on your refund. Most refund offers mention that it takes six to eight weeks to receive your refund. If the time has passed the eight week mark, contact the manufacturer to determine what is happening. Don’t be afraid to complain.

There are many consumer fraud schemes out there. It is up to you, the consumer, to educate yourself to recognize what is and what is not legitimate. We hope our tips help you minimize becoming a victim of consumer fraud crimes.