Dell Rebates Raise Ruckus
Dell Rebates Story
I never shop based on a rebate. In this case, the bad will, may very well cost Dell more than paying the rebate.
Dell Computer Corp. is refusing to pay two rebates worth a combined $200 to thousands of customers who bought Dell hardware late last year after being told they would receive five rebates worth a total of $710 - on computer systems that sold for as little as $800.
[...]Dell offered the rebates to inflate sales during its fourth quarter, which turned out to be its best ever, and is now reneging on the offer to keep its margins up. Revenue at the computer maker increased 21 percent to $9.7 billion during the quarter, while net income rose 32 percent to $603 million.
Here's the story:
Dell rebates spin confusion on Web
The Boston Globe OnlineBoston.com
Boston Globe Online / BusinessDell rebates spin confusion on Web
Mix-up offers lesson on how retail errors can magnify on Net
By Bruce Mohl, Globe Staff, 3/7/2003
Dell Computer Corp. is refusing to pay two rebates worth a combined $200 to thousands of customers who bought Dell hardware late last year after being told they would receive five rebates worth a total of $710 - on computer systems that sold for as little as $800.
A Dell spokesman says the confusion was caused when links to rebates privately targeted at employees at six corporations and faculty, students, and staff at a handful of universities gained wide exposure after being posted on FatWallet.com, a bargain-hunter website.
Dell did little to rein in the resulting stampede. The rebate forms said nothing about their exclusive nature and many consumers, skeptical that $710 in rebates on such inexpensive machines were too good to be true, called Dell's customer service before making their purchase and received assurances they were eligible.
''If I can't ask one of Dell's own people for information, who can I ask?'' said Jason Lowe, a resident physician at the University of California at San Francisco, who so far has received only two of his five rebate checks.
Lowe and other consumers caught up in the rebate mix-up say Dell offered the rebates to inflate sales during its fourth quarter, which turned out to be its best ever, and is now reneging on the offer to keep its margins up. Revenue at the computer maker increased 21 percent to $9.7 billion during the quarter, while net income rose 32 percent to $603 million.
Dean Kline, a spokesman for the Round Rock, Texas, company, minimized the financial impact of the rebates. He estimated fewer than 3,000 people would be affected by the company's decision not to honor all five rebates, costing those individuals about $600,000 in lost rebates.
''Obviously, we regret the confusion that happened,'' Kline said. ''Right now we are working as closely as we can with customers to explain what happened and get them the rebates they are owed as fast as we can.''
The case illustrates how the Internet is changing the way companies and customers interact. A minor mistake in a rebate or a coupon used to involve only a handful of consumers and could be resolved quickly and quietly. Now, with the rise of Internet forums patrolled by what amounts to nearly full-time bargain hunters, a minor glitch can quickly mushroom into a huge public relations and financial problem.
Many companies view websites like FatWallet, Anandtech
.com, and Mycoupons.com as the enemy. Wal-Mart Stores Inc. sued FatWallet in December, trying to find out who posted information on a Thanksgiving Day sale prior to the holiday. The retailer later withdrew the suit. Staples Inc. has had to contend with FatWallet postings directing consumers to exploit pricing mistakes or price-match guarantees. On Feb. 23, the Framingham office supply retailer changed its price-match-guarantee policy to exclude Internet retailers, largely because company officials found themselves spending so much time trying to figure out if website prices were legitimate.
''I think every large retailer has had a run-in with FatWallet,'' said Staples spokeswoman Deborah Hohler.
Tim Storm, president and founder of FatWallet, did not return phone calls.
Dell's rebate problems may have been exacerbated by FatWallet, but they weren't caused by the website. Dell says it offered three rebates totaling $510 on the Dimension 8250 desktop computer as part of its faculty, student, and staff program. Separately, it offered a $100 rebate on the same computer to employees at six corporations and a second $100 rebate on the computer to faculty, students, and staff at a handful of undisclosed universities. Those eligible for the rebates, who Kline refused to identify, were directed to a ''private URL'' to obtain the rebate form.
Toward the end of the offer periods for the rebates, a posting appeared on FatWallet saying the five rebates could be combined. A slew of consumers pounced on the notice, contacted the company to make sure they qualified, and ordered their computers.
''When I first saw this, I thought it was too good to believe,'' said Bo Pang, a student at Boston University. ''That's why I called Dell and they told me, `Yes, no problem.'''
The five rebate forms were all available on the Dell website. Their wording was also nearly identical, with no disclaimers about the rebates being available to a select group. In fact, the two rebate forms targeted at the smaller groups say the rebates ''can be combined with any promotion at Dell Education Personal Purchase Program Website going on from Nov. 11 to Nov. 27.''
Kline, the Dell spokesman, acknowledged company sales representatives gave out misleading information about who qualified. Nevertheless, the company decided not to approve rebate applications from ''ineligible customers stemming from the unauthorized posting on FatWallet,'' according to a posting on Dell's website.
Dell's refusal to honor the rebates has spawned an avalanche of anger on FatWallet. More than 5,000 postings have been made there on the rebate issue, with many consumers trying to coordinate legal action against Dell.
''As most people see it, Dell made an offer that was subsequently accepted by those that purchased the system,'' said Michael Blitch of Tampa, who plans a filing in small claims court.
Edgar Dworsky, editor of Consumerworld.org and a former consumer official in the state attorney general's office, said many consumers had to know that the Dell deal was too good to be true. But he said the fact that Dell representatives told many consumers that they were eligible for all five rebates raises liability issues for the company.
Kip O'Connell of Newburg, Ind., whose wife took advantage of the Dell rebates to purchase a computer he admits they didn't really need, said it's not uncommon for bargain hunters to turn up deals that cost little or nothing. He said it's called F.A.R. in Internet lingo, for free after rebate.
''It happens,'' he said. ''Who are we to guess why?''
Bruce Mohl can be reached at mohl@globe.com.
This story ran on page E1 of the Boston Globe on 3/7/2003.
© Copyright 2003 Globe Newspaper Company.
0 TrackBacks
Listed below are links to blogs that reference this entry: Dell Rebates Raise Ruckus.
TrackBack URL for this entry: http://kennethhunt.com/mt/mt-tb.cgi/690
34 Comments
Leave a comment
Search
Mike Erdely
The Open Prosthetics Project
Andrew W. Moore
Talking Out Loud with ASB
ducea
Andrew Baker
*scottstuff*
Ask Bjorn Hansen
Joe Topjian
John Sequeira's Weblog
Team Murder
defective yeti
postneo
Ben Hammersley
Chez Chrissie
The Frosty Mug Revolution
Jeremy Zawodny's blog
Lucas Gonze
Eric Norlin
slashdot
John Vu
Net Observer
Books Observer
Limoges
Bill Buxton
Melanie Rieback
IF I WOULD HAVE KNOWN DELL HAD THIS TRACK
RECORD, REBATE OR NO REBATE,I WOULD HAVE
NEVER ORDERED ANYTHING FROM THEM!!! I HAD
CALLED THEM @ ONE OF THOSE "FATASTIC DESK
TOP MODELS" WITH ALL THE BASIC GOODIES..
I TOLD THE SALES REP,NOAH,ALL I WANTED WAS
THE BASIC PACKAGE AS SHOWN ON THE BACK OF
THE "PARADE MAGAZINE" WHICH WAS IN THE SUNDAY PAPER,ALSO EXPLAINING TO HIM I WAS NOT SO "COMPUTER LITERATE". THIS WAS TO BE
MY "LEARNING TOOL"..I DID'NT NEED ALL THE EXTRA STUFF. WAS I SURPRIZED WHEN I GOT THE
PACKAGE...A SHINY SILVER "INSPRION" WITH
EVERYTHING YOU COULD IMAGINE!!! & WIRELESS
TO BOOT!!! THE BILL ON THIS...CLOSE TO
$1900.00 DOLLARS!!!! ALSO,WHO GIVES YOU 21
DAYS TO RETURN IT..ONCE YOU TURN IT ON IT
DEPRECIATES JUST LIKE A CAR,MOBILE HOME!!!
I TOO AM WAITING FOR ONE OF THE THREE REBATES I QUALIFIED FOR & A $100.00 "GOOD
GESTURE" COUPON FOR MERCHANDISE BECAUSE I'M
SUCH A "VALUED CUSTOMER". I GUESS THAT MAY
HAVE SOMETHING TO DO WITH ME PAYING MY BALANCE IN FULL IN THREE MONTHS...I JUST
COULD'NT SEE PAYING ALL THAT INTEREST ON
MY "NEW DESKTOP".
THANK YOU FOR LISTENING. I FEEL A LITTLE BETTER.....
Dell-Hell. I have been waiting for 5 months for the second rebate on the warranties I ordered with my laptop. Several calls and faxing copies of the phone order I made in the VA hospital in Sept. 2005, and they still didn't have a record of the rebate. It is on my order ack. and hasn't been delivered, so I think I'll try to get an RMA. The order received date can't start until I've received the whole order, which I haven't. I would rather do business with HP anyway, their stuff works AND they sent their rebates within the timeframe they quoted! I could buy an even better laptop now for my $1800!
I am having the same problem....I was told I would get back $200.00 in rebates....I did receive one check for $100.00 but never received the other rebate offer for $100.00. I called the rebate center many times to no avail. I have done everything they ask and they assure me I will get my check.....I'm still waiting DELL!!!!!
Dell rebates are ar farce. After ordering a home system 2400 which was advertised with a $100 rebate on Oct 4, 2005 and mailing rebate form and copies of the packing slips per Dell's instructions and eight different contacts with them (latest today, Jan 22,2006),I still do not have my rebate. When one does speak with a human(?), they know nothing about my rebate or its status.
Is the FTC aware of how Dell markets its product?
I am having trouble getting a copy of the packing slip needed to get rebate. Where do i go for my copy????
I puchased a Dell laptop which has a $150 rebate. After promptly submitting all the proper rebate info I was told by Dell that some of the rebate info was incorrect and that I would receive a card that I could fillout and submit and everything would be corrected. I never received a card and when I finally was able to talk to someone I was then told I missed the time frame to collect the rebate. I have since talked to three other customer reps, each one has told me that they have corrected my problem.
i am currently trying to get a dell rebate back on a computer that my husband bought - have been going back and forth with them for 4 months. i bought an apple computer with a printer and a $100 rebate and received the check in 4 weeks no problems.....
I filled in a 'rebate' which turns into a fradulent way to have the consumer sign up for, not one, but two additional unauthorized services.
What began as a FOUR DOLLAR REBATE has turned into a delinquent account issue.
Need I say more?
I think rebates can be very cunfusing once they have been denied the first time, however i have a lot of experiance on dell rebates, and if you get to someone on the rebate center that is willing to help you with a GOOD acctitud(yeah is hard to be nice once you are frustraded but if you try) they will help you and if ELEGIBLE you will get you rebate, is as easy as this, look at you packing slip, on the listing of all the items, if there is 1 or more rebates listed you ill get them, they will never denie them once they verify they appear there, no matter if you mail them late, ofcourse if you call dell customer care they might say they will help you and they dont, but if you call the rebate center number on the rebate form(KEEP COPIES OF EVERYTHING) they will help you, but remember if not listed on p/s as MAIL IN REBATE(not special offer or discount) then either it was done wrong or a sales man lied to you, i admit it can be frustrating, but the highest persent of the rebates are maild without 1 sigle problem or call, there is a small percentage that do give problems, and if handled the correct way you will receive it if elegible.
I purchased a computer from Dell on Dec. 1, 2003, mailed in my rebate form on Dec. 11, 2003. After waiting for the recommended time to process my rebate, now Dell says they never received it. My letter did not come back to me, so who have it?. I even went as far as calling a customer service rep who instructed me to fax my copy which I had mailed on Dec. 11, 2003. Now they are saying that my rebate form was postmarked beyond the elgibility date. Come on, now who is kidding who? Someone need to do something about Dell and its false advertising. I am not giving up and this is not the last Dell has heard from me.
THE REBATE OFF THE TV SHOULD BE HONERED
I'm now having the same problem with Dell. I purchased an INspiron 5150, the packing slip, and all other documentation which I sent them, along with the rebate form, indicates I am entitled to a $350 rebate. I sent it certified mail. They claim they don't have it.I'll get my money from Dell, one way or anonther.
The simple fact is, rebates for consumer products are all fraudulent. The merchant advertises the product at the "after rebate" price, but you actually pay the "before rebate" price. Then, you have to touch your right ear with your left hand, while standing on your left foot, face South and hop up and down three times. If you do even one of those things wrong, they refuse to give you your rebate, even though they've advertised the product at the post-rebate price.
So, they (Dell, in this instance) has the benefit of your pre-rebate money, which they then get to keep for 8, 10, 12 weeks (or forever, whichever is longer), without paying you any interest on the use of YOUR MONEY.
If that's not fraud, I don't know what is. Of course, the Bush FTC isn't going to do a damn thing about it.
Are there any class action suits going on against Dell and its fraudulent practices?
please send me tha right # for rebate status
mailed in rebate form and packing slip 08/02/03. last time i checked , which was mid dec,i was told to e-mail them all copies of my request. called dell direct so many times in oct and nov they sent me a 1 pixel digit camera for all my trouble. it's a piece of junk. still do not have rebate and probably never will. but i do have the upper hand.i will never own dell the office will never own dell and anybody who will listen will not own dell.
How to get your rebate:
Play the game. I know its aggravating, time-consuming, and downright frustrating, but you have to go through the hoops. If you aren’t willing to do this, don’t buy the product, or don’t factor in the rebate in your final cost. I have NEVER (not once, ever) had a rebate redemption go smoothly. That is, sent in the proper paperwork, and gotten a check in 6-8 weeks. They are liars, scammers, and according to some D.A.’s, fraudulent.
Rebates almost always require a phone call. They will tell you that they didn’t receive your claim, your claim was denied b/c you didn’t send in the right papers, upc’s etc. They are lying. The post office only looses or misdirects an estimated .005% of mail; that’s one in 20,000. This last year 2 in 5 (40%) of my rebates were “lost.”
When you call: Be nice, really nice. When they give you the excuse as to why the claim was denied, act like your Mr. Rodgers and say oh, really, gee, I thought I sent everything in ok. The person taking the call has to hear aggravated people all day long, and someone who’s nice, flirts, asks about the weather etc. is much more likely to get some action (on the rebate that is).
Unfortunately, most people’s problems don’t end there, after you have been assured that your check’s in the mail, and should arrive in 6 weeks, it doesn’t show up. So your what: 10-14 weeks after the purchase? Call again, be persistent, I would recommend calling every week until you get the check.
And finally, don’t forget what a horrible experience you had when making your next purchase. I see on some message boards, comments that indicate b/c a person winds up actually getting the rebate, the company is ok, or trying to make things better. REMEMBER: They took you for an additional 10 weeks with YOUR money, you spent HOURS and HOURS of your valuable time on the phone, and this is STANDARD – REBATE - PROCEDURE! They are able to weed out the people that forget, don’t have the time, or the stomach to deal with these slimy companies.
In summary:
1.) Follow their rules e.g.: submit paperwork on time, completely, correctly
2.) Send your submission certified, return receipt and circle the ‘print name’ box on the form at the post office.
3.) Start calling after about 4 weeks. Call every week.
4.) Be nice – I know, but popping off will get you no where
5.) Be persistent
6.) Don’t forget what you went through next time you see that $50 rebate
dell is not keeping its word. their cust. treatment is one word.....fraud.
Seems like lots of electronic rebates are scams.
Purchased a Dimension 4600C on 8/21/03 and sent the rebate form and packing slip etc.....by certified mail return receipt.( $150 rebate) I was told today they have never received the forms... Their e-mail to me reads " I am not showing a record for you in our system. We do not sign for registered mail at PO Boxes. The post office signs and throwns it in with all the other mail. There is no guarantee we will get it....the signature only tells you that the post office got it""
So, anyway.....I am now suppose to Fax all of the information to them......It would have been a lot easier to just deduct the rebate instantly from the bill.
I don't intend to give up...you think I would have learned about rebates..I spent 6 months getting one from HP three years ago on another computer deal.
Same old story as above. I made a laptop purchase from Dell based on the rebate offers ($169). I haven't received them, Dell has no record of them, I even e-mailed with customer care and she said that she resubmitted the info for me - 3 weeks later, Dell still has no record of owing me rebates?
Not to mention that I bought a 12 month subscription to MacAfee through Dell, and Dell did not even provide the correct software needed for this 12-month subscription. Luckily I had a problem with my MacAfee and spoke with them and they were shocked to find out that Dell was selling subscriptions to their product, but providing people with software that does not allow registration so MacAfee never receives the money for the subscriptions and has no record of the subscriptions.
Dell is a major rip-off, I wish I would have been able to find this information before I made the purchase!
I see a pattern here..and its called bait and switch. My wife purchased a Dell laptop for me on line as a gift in March of 2003. She was drawn to it due to a promised $200 in rebates. What she got was a fast talking sales woman who got her credit card number then padded the order with many extras she did not ask for bringing a purchase that was to have cost no more than $1100 to an outrageous $1700. Could this be because Dell sales people earn commissions on orders? It took several calls to India and back to get this fixed. Now we are still waiting for her rebate of which she has received only $50. Its the same story...rebates did not arrive on time or were lost... so Dell claims. Too bad..we got your money and you get no rebate. With todays technology...any company that was serious about rebates could do this on line all electronically but its more to the advantage of Dell to make it as cumbersome and as tortuous as possible to take full advantage of the discouragement factor.
I bought a Poweredge back in February, which came with a $100 MIR. I did not get my MIR check, so contact them in May and Sent my retained copies of the forms and receipt by certified mail. However, I have not received nothing yet -- September 20.
Again, I bought a DELL Dimension 4550 back in May, which came with a $200 MIR, but I haven't received my rebate check yet -- September 20.
Really frustrated!!!!!!!!!
I recently purchased a Dell and I cannot get a rebate form. I have called and called. They say they will e-mail it to me. Ha
I cannot print it off their web-site. I think they do this on purpose.
I bought a Dell 650 on July 9, 2003 and was offered a $200 mail-in rebate. I sent my rebate form and a packing slip to the address given by Dell well before the deadline. Six weeks later I checked its status and was told that the packing slip was not received. Since I copied everything, I immediately resent all the forms again with copies of all the labels I can get from the packing box. However, up until now when I check the status, it still shows exactly the same information.
I just wish to let people thinking of buying from Dell know that the dishonest handling of rebate by Dell is still going on.
I purchased a Dell Computer in March of 03. I requested that it be sent to my work address due to it going to be a surprise for my wife. It did not get sent to my work address, It got sent to my home and received by my wife. I mailed in a rebate form for $100.00 within 30 days of purchase. I was told Dell didnt get it and requested to send in another. I sent in another rebate form and here it is Sept of 03 and I still have not received the $100.00. I encourage all people to call the B.B.B. to file a complaint. I was told by a Dell employee that 30% of all new owners do not send their rebate forms back. Just think about what they have to gain if a few more rebate forms are not received by the company. That 30% increase in the bottom line could increase to 40% or higher. Next time I'm buying another name brand or giving the little guy my $$$$
I also bought a dell with the thoughts of getting my 150.00 in rebates and got the same song and dance never got my packing slip they said they would give me merchandise worth that much ,but could not give me my money. WHAT A SCAM. please tell my what I can do?
I too bought a dell last fall and i'm being told that I did not send in my packing slip. Thats bull!!! I had a heck of a time getting the rebate form in the fisrt place, but it was sent in and on time with all of the requested items. I had faith in Dell that is going to the way side. Can we start a class action suit????
I purchased a dell "home system" six months ago. I sent the rebate form in TWICE. Both times they showed no record of receiving. Six months, 2 hours on phone, and four calls later I received "credit" on my account for the rebate amount (over $200). One call I was offered product exchange...rrriiight. When I did not accept and requested a supervisor the "customer service rep" said a supervisor was not available and put me on hold until I "calm down". I hung up and reported this to the next rep who was appalled. Dell has a serious problem.
My wife purchased a Dell 2650 laptop in March of 2003. They offered a $150 rebate, plus a free upgrade to CDRW from CDROM. We bought a RAM upgrade for $50 to go with it. We just received a check today (good turnaround time), but it was only for $75. We called a few phone numbers, tried to connect directly to customer service online, and sent an email. The online was a rude awakening..."sorry this is for home users only...goodbye". I am at home. The person on the phone basically called my wife a liar by saying that the two offers could not be combined. It that is the case, why did they send even the $75?
I'm thinking that Dell is trying a new cheat to its customers to keep its revenue numbers up. This cheat involves only sending half the rebate, assuming most people will accept half rather than none and not complain. Anyone else have this experience?
I too purchased 2 Dell computers, one a desk top and the second for my son, a lap top.I recieved the first rebate but not the second. I was looking for a site to post a question about the laps of time from the first rebate and the awaited second rebate, when I happened on this postings of unhappy Dell owners. I had previously tried to contact someone at dell, to check on the balance of my account, and was given the wildest buracratic run around I have ever had. I was transfered from dept. to dept. and then given another phone number to call, and then a third phone number. Finially I had enough and went on line to let them know how I had been treated as a "Valued customer". And once again was sent a e-mail that I had sent it to the wrong dept. I had gotten the address off of my bill. They don't even have the decency to forward my e-mail to where it has to go. I can see another battle on the horizon about my rebate check.
Please keep me in mind if anyone finds someone at Dell that really cares what is about to happen to their customer base.
I too purchased 2 Dell computers, one a desk top and the second for my son, a lap top.I recieved the first rebate but not the second. I was looking for a site to post a question about the laps of time from the first rebate and the awaited second rebate, when I happened on this postings of unhappy Dell owners. I had previously tried to contact someone at dell, to check on the balance of my account, and was given the wildest buracratic run around I have ever had. I was transfered from dept. to dept. and then given another phone number to call, and then a third phone number. Finially I had enough and went on line to let them know how I had been treated as a "Valued customer". And once again was sent a e-mail that I had sent it to the wrong dept. I had gotten the address off of my bill. They don't even have the decency to forward my e-mail to where it has to go. I can see another battle on the horizon about my rebate check.
Please keep me in mind if anyone finds someone at Dell that really cares what is about to happen to their customer base.
just read a few comments.on the dell rebate ripoff.I have been trying to get a 5000 dollar rebate owed me for 3 months now.how can such a huge company like dell treat there customers like that.after watching all there tv adds about how good of a company they are .I have spent hours on the phone.and all I get is the run around.it is not so much for the fifty dollars. it is a matter of principal.for me.my next step will be to file a complaint with my state attorny generals office cnsumer affaires office. thank you for your site RAY
Dell lied about the postmark on my rebate submission, in order to avoid paying my $100 rebate. After several phone calls (including a 1-hour one), a certified letter, and a few mildly threatening emails, Dell has agreed to credit my account with HALF of the advertised rebate. I shall post the story of my troubles with Dell on my homepage, www.huemer.com, under the rubric "Another Crooked E", with a link to YOUR page.
I've been waiting on December 2002 rebates for months now from Dell... I have made multiple contacts at www.rebatestatus.com and Dell customer service - rebates still "processing." If I could charge them interest on the balance from the time it was due to the time I received that would help (total in rebates due to me - $560.00.
I purchased two dell computers and a friend one. All three have been denied the $100 rebate. I am off to the state attorney general. The computers are fine, but the company is a cheat.