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Wednesday, April 20, 2011

Is This the Reason Some Stores Limit Your Coupons - They are Committing Coupon Fraud while Accusing the Couponers

Many years ago, manufacturers were having problems with stores gang-cutting coupons from unsold newspapers, then turning them in for reimbursement. It had gotten so bad that one organization estimated that over 108 million coupons were redeemed fraudulently annually -- and that was back in 1977!

In a sting operation almost worthy of its own feature film, the industry fought back. Targeting an area in New York where gang-cutting and fraudulent redemption was suspected to be rampant, a new "manufacturer" offered a new product in the coupon inserts - Breen Laundry Detergent. The trouble was... Breen detergent did not exist. The 25-cent Breen coupon was designed solely to catch organizations that were gang-cutting inserts and submitting all of the coupons for redemption.
And cut them them, they did. Over 117,000 coupons for the non-existent Breen detergent were submitted for redemption from that single ad campaign, giving investigators specific information as to which stores, retailers and firms were gang-cutting on a massive scale. (At the ACP conference, presenter Ron Fischer, founder of Redemption Processing Representatives, actually had one of these Breen detergent coupons in his hand while telling this story!)

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