I  hit the roof yesterday when I found out that we had missed the deadline to apply for the promised $100 rebate on my son’s fancy cell phone. To make myself feel better, I checked with Consumers Reports and some other sources: sure enough, the Marshalls are not alone. It is estimated that 40%-60% of all rebates go unclaimed, to the tune of 4 billion dollars. What a deal for retailers! They lure you to the store with low prices. When you get there, you discover that the price will only truly be low after you mail in a rebate request and get a check in return. But you’re in the store, and have made the emotional commitment to buy. Later, you may find out that the various hoops you have to jump through to get the rebate back are annoying and time-consuming, and easy to botch. If you are busy, you may put it aside—and ninety, sixty, thirty, or even just seven days later, the rebate offer expires.

Are rebates ethical, or are they a particularly insidious form of consumer fraud, using the well-document human characteristics of impulse buying, inattention to detail, short attention span and procrastination against consumers to make millions of dollars in money that was supposed to be discounted but never was? Continue reading →