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Your Mail in Rebate May Be In Jeopardy

submitted on November 14, 2008 by MrCheap in "Stores / Merchants", last updated on November 20, 2008 by YanBz
TRENDnet and many other companies have been affected

If you use mail in rebates for virtually any product in North America, you will want to read up on this and start making sure your money is safe.

We have been longstanding supporters of mail in rebates (MIR) in our industry and for the most part if you properly managed your personal rebate process, MIRs have been a fairly safe bet. All of that is about to change. Continental Promotions Group headquartered in Canada is one of the rebate industry’s largest and oldest players and has huge ties to computer hardware rebates. CPG is putting the screw to its customers to “repay” rebates that have already been funded. Hardly what we would call “Fulfilling the Promise of the Brand” as it is stated on its home page.

Since 1989, CPG has earned an enviable reputation for its innovative, responsive and effective promotions, from rebates and loyalty programs to gift cards and sales spiffs. The company is a recognized leader in the promotion industry, having created countless consumer, retail and business-to-business programs for more than 500 national and international clients in 120 countries.

While we prefer not to kiss and tell, our client list reads like a Who's Who in Consumer Retailing and Manufacturing. From high tech to housewares, home improvement to home entertainment, appliances to auto parts.

Here is a simple overview of how a rebate with CPG works. Company X puts a rebate on its product, let’s say for $20. Company X expects to pay out 5000 of these rebates to consumers. Company X would then put the $100,000 needed to cover that rebate into CPG’s bank accounts. CPG basically escrows the money for consumers. CPG is trusted with this money in order to make sure the consumer is “safe.”

We have it from good sources currently that CPG owes consumers somewhere in the neighborhood of $9M to $12M worth of rebates. The problem here is that CPG currently only has about $3M in cash to cover that $9M-$12M in rebates owed to the consumer. Where that money has gone to is anyone’s guess and we will leave speculation up the law enforcement authorities and the courts.

Currently CPG is contacting its customers telling them that they will need to yet again deposit money into CPG accounts in order for CPG to have the cash to cover rebate checks to consumers. This is money that companies have already paid CPG previously. CPG is telling its customers that if they do not pony up AGAIN, consumer rebate check payments are in jeopardy. In our example above, CPG is not sure where the $100,000 is that Company X paid them, but we are sure that they want another $100,000 or CPG will start bouncing consumers’ MIR checks.

If you have a rebate out with CPG, I would check into it quickly. If CPG is no help, contact the company that manufactured the product directly and explain your concerns.

Certainly MIRs are a mixed bag in the world of the computer hardware enthusiast. Some swear by them while others will not touch them with a ten foot pole. One thing is for sure, if CPG fails consumers and starts bouncing rebate checks, CPG will massively undermine the entire way that e-tail and retail computer hardware outlets do business as well as many other markets. It likely will not be for the better initially, but let's face facts, lower pricing up-front without the MIR hoops to jump through is what the consumer wants.

  • 10849
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    Posted by Solstice on November 20, 2008 [reply] 1 1
    I clipped the following from another site and thought it might prove helpful to have around.

    Who is affected?

    The easiest way to see if you are affected, is to check copies of rebate materials you have submitted recently, which have not yet been fulfilled. You keep copies, right? Take a look at the destination address. The department and name of the recepient will vary depending on the brand of the product that carried the rebate, but the address will most likely have the following in it:

    P.O. Box 52900 (or P.O. Box 52911)
    Phoenix, AZ 85072-2900

    CPG main website for checking upon your rebate is If you see this site as point of contact on the rebate, you may be affected.

    If you do not have a site or address listed on the rebate form, you may use the known phone numbers below to figure out if you may be affected:

    * 877-776-1280 (Antec rebates)
    * 877-776-2676 (XFX rebates)
    * 866-678-7025 (Acronis rebates)
    * 866-533-6885 (AVG Rebates)
    * 888-864-6781 (Canon rebates)
    * 866-533-6880 (Logitech rebates)
    * 866-256-9991 (Smith Micro rebates)
    * 877-776-4631 (TRENDNet rebates)

    Last, but not least, the following companies are known to have used CPG as their rebate processor in the recent months. We do not have a full list of the companies which have used CPG as their rebate clearing house, however, here is the list we have so far, compiled with the help of our users:

    We have linked the names for companies which we have had recent Front Page Deals involving rebates. Click on the link to see those deals.

    * Abbott Laboratories (Freestyle Meters)
    * Acronis Software
    * Adaware
    * Adobe
    * Advance Auto Parts
    * Antec
    * ArchBrook Laguna (Magellan Refurbished Rebate from Pep Boys)
    * Atdec (wall mounts)
    * AVG
    * Bed Bath & Beyond
    * BIC Corporations US - Shaver Division
    * BFG
    * Bridgevine
    * Canon
    * Casio
    * Checker / Schuck’s / Kragen Auto Parts
    * Citibank
    * Core
    * Costco
    * DBL Distributing LLC (Harman Kardon)
    * DeLorme
    * Freestyle Meter
    * Fujitsu
    * Joe’s Sports
    * HIS (video cards)
    * Home Depot
    * Logitech
    * Motorola (Surfboard cable modems)
    * Murray’s Discount Auto Parts
    * Natures Earth Products
    * Newegg (for certain products, other than Rosewill)
    * Panda Distribution
    * Pandigital
    * PC Tools
    * Pentax Imaging
    * Ping
    * PriceGrabber
    * Rosewill (Newegg house brand)
    * Rustoleum (Menard’s July $4 Door Paint Rebate)
    * Samsung (printers)
    * Smith Micro Software
    * Spot
    * Tabletops Unlimited
    * TomTom
    * TrendNET
    * Westinghouse
    * Windstream
    * XFX
    * XM Satellite Radio
    * ZeroTherm
    * Zyxel
    • YanBz
      Posted by YanBz on November 20, 2008
      [reply] 1 0
      Thanks Solstice. This is very useful info
  • 10850
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    Posted by Solstice on November 20, 2008 [reply] 1 1
    Now, I'm not personally going to reference this list every single time I post a rebate item. However, if a rebate gets posted that is a possible match, I would like to suggest that we flag it for possible reevaluation, or just leave a comment noting to be cautious, as oppose to simply voting it negative.
  • 11068
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    Posted by Solstice on November 23, 2008
    [reply] 0 1
    Just bumping this important info to the top of the thread listings.

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