NJ Legislators Tackle Rebates
New Jersey may soon follow Connecticut and Rhode Island
as a state that requires retailers to provide instant rebates to consumers
rather than making them fill out paperwork to get money back on purchases.
of traditional rebates argue that they are essentially a ruse to get consumers
to buy products with manufacturers knowing full well that it is unlikely that
many will actually receive a return check in the mail.
Legislators in New Jersey
sponsoring the bill point to research, which shows roughly 40 percent of manufacturer
rebates are never redeemed by consumers.
"Customers should not be deceptively lured into stores by low prices that
only exist after they take the product home, cut apart the packaging, fill
out aggravating paperwork and then wait weeks or months for a check," Assemblyman
John Burzichelli, D-Paulsboro, told The Associated Press.
"This bill would not prevent manufacturers from offering rebates to New
Jersey consumers but would only prohibit stores from deceptively passing off
a net price to unwitting customers," Vincent Prieto, D-Secausus, told
the AP. "It’s
a consumer protection measure that makes common sense."
If the law and
a corresponding piece of legislation in the New Jersey Senate pass, than violators
could be subject up to $20,000 in fines along with other damages and restitution.
Discussion Question: How effective are rebates as a means of driving product
purchases? Do you think that rebates are on the way out?