ACCC whacks HP over cash backs

Stephen Withers
Friday, 03 July 2009 13:31

Opinion and Analysis

Wearing my consumer hat for a moment, I'd much prefer the value of a cash back to be deducted from the purchase price at the point of sale, and for any premiums to be supplied in-store.

While my personal experience with cash backs is satisfactory (though limited), there are plenty of tales of woe from people who say their claims were incorrectly dishonoured.

Part of the problem - and I'm talking about cash-backs in general, not HP - supposedly involves vendors or their agents rejecting valid claims as a way of reducing the total cost of the promotion.

A particular ploy is said to be failing to notify a rejected claimant before the end of the promotion period, making it impossible to resubmit the claim.

So when Samuel says cash backs are popular with consumers, I think that's only true in the sense that anyone would prefer to save $200 on a TV or $15 on a keyboard than pay full price.

But given the choice of a $200 off at the register or a cheque for $200 in two or three months time, which would you prefer?

The same goes for gifts - if the offer is for a spare set of ink tanks, then it is a simple task to ensure that there is adequate stock in the store. Admittedly, things are more complicated when the customer gets a choice, such as any three of ten movies when buying a Blu-ray player, and in such circumstances redemption is the only practical option.