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NewEgg Rebate is Not All It's Cracked Up To Be

By Ed Foster, Section The Gripelog
Posted on Mon Jun 13, 2005 at 09:35:17 AM PDT

Those who are lured by an attractive "after rebate" price on the Internet don't just have to worry about whether the check will actually arrive. One reader recently discovered that what looked like a nice deal from NewEgg on an MP3 player would actually cost him more money if he wanted the rebate.

"My girlfriend ordered an IRiver H10 MP3 player for me from NewEgg as she thought it was a great deal with the $100 mail-in rebate," the reader wrote. "But what wasn't even hinted on the NewEgg order page was that to get the rebate you would also have to purchase a year's subscription to a music service at a cost of $180. So for NewEgg to advertise an after-rebate price of $125 was a little misleading."

Or a lot misleading, actually. After the reader wrote me last week, I checked the NewEgg website and the rebate offer that had fooled his girlfriend was still there. (When I checked again on June 12th, it was gone, replaced by a $20 IRiver rebate.) The "iRiver Blue 5GB USB2.0 Audio Jukebox MP3 Player Model H10BLUE" was listed at an after-rebate price of $125 -- $225 minus the $100 mail-in rebate. Only by clicking on a link to rebate form - which was actually from RealNetworks -- could one eventually discover that after paying $225 to NewEgg, you also had to pay Real $178.95 for a Rhapsody to Go subscription in order to claim the rebate.

The reader wrote to NewEgg to complain about the way they described the offer, pointing out that the iRiver/Rhapsody rebate was available no matter where one bought the IRiver MP3 player. "I got curious as to how other web retailers were promoting the rebate," the reader wrote. "What I found was that either the rebate was not mentioned or, when it was, it was clearly stated next to the price that you had to purchase an annual subscription to Rhapsody To Go. My issue boils down to what I think is deceptive advertising by NewEgg to push a product." Almost a week after he'd written to them, he finally got what appeared to be a form response from NewEgg telling him that rebate policies were up to the manufacturers.

That response left the reader all the more frustrated. "My point was that the average person coming across NewEgg's order page would think, like my girlfriend, that purchasing the H10 entitles you to the rebate," the reader wrote. "Not pay this, and then this, and only then do you get the rebate. Other sites don't seem to have a problem making this clear, so I'm very disappointed that NewEgg doesn't seem to understand that they need to look at their business ethics."

< Did Apple Sue the Rumor Blogs to Keep Intel Deal Quiet? | Gateway Won't Honor Its Published Specs >

NewEgg Rebate is Not All It's Cracked Up To Be | 72 comments (72 topical) | Post A Comment

Cracked Egg[ Reply to This ] (none / 0) (#1)
by Anonymous User on Mon Jun 13, 2005 at 11:09:43 AM PDT

So could one buy the MP3 player and skip the rebate without having to buy the subscription?

Regardless this is a dirty way to do business and I will make it a point to steer my customers away from the Egg.

Allen Tate

[ Reply to This ]

Re: Cracked Egg[ Parent | Reply to This ] (none / 0) (#2)
by Ed Foster on Mon Jun 13, 2005 at 11:29:33 AM PDT

Yes, you could just pay the regular $225 price and forget about the rebate, which I believe is what this reader decided to do. But, of course, you can get it for that price anywhere. What the reader resented was being lured to NewEgg by the after-rebate price that turned out not to be real. -- Ed

[ Parent | Reply to This ]

Re: Cracked Egg[ Parent | Reply to This ] (none / 0) (#3)
by Ed Foster on Mon Jun 13, 2005 at 11:34:36 AM PDT

Or I guess we might say it was an after-rebate price that turned out to be all too Real.

[ Parent | Reply to This ]

e4rgh[ Parent | Reply to This ] (none / 0) (#59)
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[ Parent | Reply to This ]

ertfgh[ Parent | Reply to This ] (none / 0) (#60)
by Anonymous User on Sat Jul 05, 2008 at 12:17:18 AM PDT

Why?[ Parent | Reply to This ] (none / 0) (#5)
by Anonymous User on Mon Jun 13, 2005 at 12:36:05 PM PDT

That would be pretty silly, Allen. I'm not defending the way NewEgg advertised this rebate, because it was clearly misleading. But I will defend NewEgg -- they're the best online computer equipment store by far. There are many good reasons NewEgg is so popular and people speak so highly of it. One badly advertised rebate doesn't mean their good prices, wide selection, and fast shipping are suddenly unimportant. They also occupy a unique place in the market I think -- most of their price-equivalent competitors are much smaller and less reputable dealers. But honestly (and I feel bad saying this, especially on Gripelog), who buys a product with a huge rebate if they haven't read every single thing they can find about it? A little healthly skepticism would have saved everyone trouble. There's an element of caveat emptor here that shouldn't be ignored.

[ Parent | Reply to This ]

Re: Why?[ Parent | Reply to This ] (none / 0) (#10)
by Anonymous User on Tue Jun 14, 2005 at 08:12:16 AM PDT

It may be silly but if you show them as soon as they start being abusive that you aren't going to take it then they are more likely to get the point and stop the abusive tactics. - Allen

[ Parent | Reply to This ]

Newegg[ Parent | Reply to This ] (none / 0) (#16)
by Anonymous User on Tue Jun 14, 2005 at 12:47:30 PM PDT

Newegg is not as good as everyone thinks. As someone who has spent about $8,000 with them over the past few years and used them pretty much exclusively, I was surprised to find that they would not post my negative review of one of their products, a KVM switch that barely functioned. I thought I'd warn others not to buy this piece of junk (I didn't want to pay to return it just to get another piece of junk -- I determined that it was designed and built poorly). After inquiring, I discovered that they review all user feedback and don't post negative reviews. In other words, they won't post anything that might negatively impact sales. So you cannot pay any attention to their user reviews because they are filtered of almost all negative content. It's just a marketing gimmick to increase their sales. Having said that, they still have some of the best prices, the fastest shipping, and are one of the best on-line retailers out there. But they're not perfect by any means, and I think I'm going to start spreading my business around more. Newegg won't reform unless theire sales get hurt. Mike B.

[ Parent | Reply to This ]

if they are that good ....[ Parent | Reply to This ] (none / 0) (#11)
by Anonymous User on Tue Jun 14, 2005 at 10:05:41 AM PDT

If newegg is as good as you said they are, then they ought to make amends asap. Otherwise, this will just tarnish their reputation, if any. I have never done business with newegg (BTW, I hardly do business online simply because I seldom trust them), although I have seen some good deals advertised and at some point did consider buying from them ... alas, if this is not settled properly, I'll avoid them.

[ Parent | Reply to This ]

Good egg[ Parent | Reply to This ] (none / 0) (#20)
by tcsbiz on Tue Jun 14, 2005 at 02:17:00 PM PDT

NewEgg has been a good egg for a long time. I agree that for online purchases they are among the best. This may have been just a mistake on their part, or, it may have been on purpose. NewEgg needs to be watched closely to see if more of this happens. I'll give 'em 2 strikes, then they're out!

[ Parent | Reply to This ]

False advertising is FALSE advertising[ Parent | Reply to This ] (none / 0) (#26)
by Anonymous User on Wed Jun 15, 2005 at 06:29:32 AM PDT

Sorry, but this one is simple. False advertising is false advertising. And yes, that does counter good prices, good tech support, etc. They lied to begin with - so why would you trust them to honor future committments?

That said, I never buy based on a future rebate, too many builtin gotchas. I base my decisions on the price I have to pay. A rebate is only a counted if either it comes off the price before purchase or is paid at the cash register (if there is a sales tax issue).

[ Parent | Reply to This ]

Honest mistake?[ Parent | Reply to This ] (none / 0) (#34)
by tcsbiz on Thu Jun 16, 2005 at 05:15:43 PM PDT

This may be an honest mistake. And, yes, companies do make honest mistakes without trying to be deceptive. Does that still make it false advertising?

But, I wonder why the customer didn't get satisfaction from their customer service. That's disturbing.

[ Parent | Reply to This ]

Caveat Emptor[ Parent | Reply to This ] (none / 0) (#36)
by Anonymous User on Fri Jun 17, 2005 at 08:09:00 AM PDT

You seem to take Caveat Emptor as a given; the natural way of things. I don't agree. It seems NewEgg deliberately obscured the true nature of their offer, and the writer's girlfriend may well have been in no position to suspect she was walking into a trap. That just isn't right. The phrase "Caveat Emptor" was in all likelihood coined by a vendor who spoke Latin.

[ Parent | Reply to This ]

s[ Parent | Reply to This ] (none / 0) (#63)
by Anonymous User on Fri Aug 15, 2008 at 03:33:04 AM PDT

FTC has addressed similar deceptive practices[ Reply to This ] (none / 0) (#4)
by Anonymous User on Mon Jun 13, 2005 at 11:49:21 AM PDT

The FTC has slapped Office Depot and buy.com for similarly deceptive practices. See http://www.ftc.gov/os/2000/06/officedepotana.htm and http://www.ftc.gov/os/2000/06/buydotcomana.htm

[ Reply to This ]

Call out the narcs, man.[ Parent | Reply to This ] (none / 0) (#7)
by foxyshadis1 on Mon Jun 13, 2005 at 02:20:39 PM PDT

I never knew those deals were censured, I remember them showing up every week for a while (and the accident where MS's legal language neglected to mention immediate cancels not invalidating the rebate).

They were probably brought about by a pattern of such behavior, whereas the NewEgg incident was isolated as far as I know; most like the fault of a section editor, not policy. They need to take action against whomever's fault it was that it got up there and wasn't edited for weeks, and they should be willing to take back returned items free of charge; we should email them to push them to do so.

Sad that service with a fill-in-the-blank has almost universally replaced service with a smile online, though.

[ Parent | Reply to This ]

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Out to be illeagal[ Reply to This ] (none / 0) (#6)
by Anonymous User on Mon Jun 13, 2005 at 12:57:19 PM PDT

to publish prices as after rebate prices... Looking over the Sunday Papers all the stores are still putting the after-rebate prices in huge type and putting the real price and rebate list in tiny type... Any seller that does that should be shut down, it's dishonest and deceptive! The price listed is NOT the price they're selling it for, so they shouldn't be allowed to trumpet it as if it were...

[ Reply to This ]

Make them show pre- and post- rebate prices equall[ Parent | Reply to This ] (none / 0) (#13)
by Anonymous User on Tue Jun 14, 2005 at 12:26:16 PM PDT

Connecticut has a law forbidding stores from advertising prices that include rebates. As someone who has had the misfortune of reading those ads let me tell you, they are incredibly difficult for someone looking for good after-rebate deals. What SHOULD be done is to require the store to publish the before and after rebate prices in EQUAL SIZE TYPE. That way, both are visible, and the free stuff (or really cheap after rebate) will still be obvious.

[ Parent | Reply to This ]

CT Rebate Law[ Parent | Reply to This ] (none / 0) (#21)
by Anonymous User on Tue Jun 14, 2005 at 04:15:47 PM PDT

Connecticut's law actually is great for the consumer. According to their website: "Connecticut has a Rebate Advertising Law that requires retailers who advertise the net (after rebate) price of an item to pay the consumer the amount of that rebate when he or she buys the item. If the retailer doesn't wish to do this, it cannot advertise the "after-rebate price" as the final price to be paid by the consumer. Thus, there should be no confusion about the amount the customer must pay at the cash register." Hopefully all sites will implement this law one day.

[ Parent | Reply to This ]

CT Rebate Law[ Parent | Reply to This ] (none / 0) (#37)
by Anonymous User on Fri Jun 17, 2005 at 08:53:17 AM PDT

Something like this should be adopted as a Federal law! Or better still, if a store advertises a rebate as an inducement to buy, then the price paid by the consumer should be minus the rebate, and the store itself must be responsible for collecting the rebate to reimburse itself.

[ Parent | Reply to This ]

Rebates advertising[ Parent | Reply to This ] (none / 0) (#39)
by chuckbo on Fri Jun 17, 2005 at 10:42:05 AM PDT

For a while, Powermax stopped giving rebates and just advertised the cash register price (this is for their regular free shipping and free memory promotions). They say they had to go back to the rebate model because they were taking a hit on their sales -- in other words, customers have been trained to react to rebates.

[ Parent | Reply to This ]

Ebuyer Rebates[ Parent | Reply to This ] (none / 0) (#25)
by foxyshadis1 on Wed Jun 15, 2005 at 01:20:19 AM PDT

I've noticed that I really like the way ebuyer.com handles rebate pricing - they have the regular price in BIG RED LETTERS and the after-rebate price in small black letters. Ex: http://www.ebuyer.com/customer/products/index.html?action=product_uid=27191

Their newsletter is the same way, in fact they only list the rebate amount, without the after-rebate price appearing anywhere. That's really cool of them. (Aside from showcasing some of Creative's amazingly ugly speakers this week.)

[ Parent | Reply to This ]

NewEgg Rebate on Soyo Mobo[ Reply to This ] (none / 0) (#8)
by Anonymous User on Mon Jun 13, 2005 at 07:40:08 PM PDT

Hello, I bought a Soyo motherboard after a rebate of $75.00, after purchase, making the mobo free - shipping and tax. I received the mobo and sent in the rebate. Weeks and then months went by. After a few months I e-mailed NewEgg CSR and complained about the non-received rebate. They asked for order information. Months passed by and I again inquired about non-received rebate. After another couple of months I finally receive an e-mail that explained that NewEgg would honor the rebate by crediting my credit card for $75. This is about a year later.

[ Reply to This ]

Soyo is whole 'nother ball of wax[ Parent | Reply to This ] (none / 0) (#12)
by Anonymous User on Tue Jun 14, 2005 at 12:23:10 PM PDT

Soyo, as I understand it, just decided not to pay their rebates. You should be thankful that Newegg paid you directly. I don't think that one was Newegg's fault.

[ Parent | Reply to This ]

Cracked Egg[ Reply to This ] (none / 0) (#9)
by byelen on Tue Jun 14, 2005 at 07:45:26 AM PDT

Unfortunately, it's not just New Egg. Comp USA and others regularly calculate upgrade rebates as part of their "With Rebate" price. So, unless you're upgrading from an earlier version of the product, there is no way to achieve the advertised price.

[ Reply to This ]

Upgrade rebates[ Parent | Reply to This ] (none / 0) (#14)
by Anonymous User on Tue Jun 14, 2005 at 12:32:18 PM PDT

Many upgrade rebates (Symantec and McAfee come to mind) are pretty liberal and will take a number of different products (not to mention you could buy 2 different products and then use one for the other's upgrade proof and vice versa). However, I do agree that CompUSA took this to a new level recently (I think it was the Memorial Day sales) when what seemeed like more than half of their software had upgrade rebates, and they were NOT for products that everyone would already have.

Of course, CompUSA is also the company that has brought you triple rebates (3 rebates required to get the advertised price). It kinda makes you wonder if they learned ANYTHING from their recently run-in with the FTC (apparently not).

[ Parent | Reply to This ]

My NewEggsperience[ Reply to This ] (none / 0) (#15)
by Anonymous User on Tue Jun 14, 2005 at 12:46:39 PM PDT

I am not a fan of NewEgg. I read a lot of good things about them on Epinions before I placed an order. After 2 days, they had not even started to process my order. I cancelled the order and bought from PCConnection instead. They've been around FOREVER and they have never let me down. After placing the order, I had my product less than 24 hours later. How's that for fast!

I don't know why the Egg didn't process my order. The order was for over $1200 worth of stuff. I even added 3 bucks for 'rush' processing. They had a couple of smaller items I re-ordered after cancelling my main order and the order total was about $75. They processed that order quickly. Not sure what their problem is, but I'll be avoiding them when possible.

[ Reply to This ]

Newegg's reputation[ Parent | Reply to This ] (none / 0) (#18)
by Anonymous User on Tue Jun 14, 2005 at 01:15:55 PM PDT

I've been buying from Newegg for well over a year now: placed over 100 orders according to their CSR's and have NEVER had a problem they couldn't resolve. They once DID delay an order I placed, but it was for more than $1,000 worth of stuff (hmmm... sounds eerily similar to this situation... hmm...), so after a few days when I saw it hadn't shipped, I called them and found that they were worried about fraud. Once I talked to someone they immediately shipped my order and deducted all shipping costs. I have nothing but the highest praise for my experiences with them - but ANY rebate should be read VERY closely. Doesn't matter if it's online or in a store: fine print will kill ya when it comes to rebates...

[ Parent | Reply to This ]

Order delay[ Parent | Reply to This ] (none / 0) (#19)
by Anonymous User on Tue Jun 14, 2005 at 01:34:12 PM PDT

I suspect the size of the order was probably the problem. Willing to bet was pulled for some type of fraud check that was backed up.

[ Parent | Reply to This ]

Rebates in general[ Reply to This ] (none / 0) (#17)
by Anonymous User on Tue Jun 14, 2005 at 12:59:02 PM PDT

I avoid rebates period. If everyone would stop participating in these scams, we could convince retailers to drop this deceptive form of doing business.

[ Reply to This ]

I couldn't agree more[ Parent | Reply to This ] (none / 0) (#22)
by Anonymous User on Tue Jun 14, 2005 at 10:04:56 PM PDT

If stores were genuinely interested in attracting customers through lower prices, they could just offer discounts at the register. With cutthroat rebate farms on one end and ignorant customers on the other, rebates are a(nother) way for stores to eat their cake and have it too. I don't share your enthusiasm for ending the practice though, as "low, low prices" have always had a way of clouding the average consumer's judgement.

[ Parent | Reply to This ]

Rebates and New Egg and bait and switch[ Parent | Reply to This ] (none / 0) (#23)
by PeterMcG on Tue Jun 14, 2005 at 10:19:50 PM PDT

Rebates ought to be legislated out of existence.

I recently spent $600 at Frys on Memorial day and ended up with 12 rebate forms. It took me three days to copy, read the fine print, cut out upcs, and fill in all the forms. If I get them all back it will total about $160.

Several of the rebate forms suggested I register the rebates at web sites that were down. One of the rebates didn't exist at a web site that was up.

I am almost sure I will run into problems getting these rebates fulfilled. What a hassle!

Also...speaking of deceptive practices...it seems that good ole bait and switch is back. I recently appeared at a COMPUSA to purchase a hard drive that was on sale for 3 days. I arrived on the first day of the sale. They were sold out and pointed to a small-print notice that quantities were limited to what they had on hand. They also informed me that they do not do rain-checks because the sale price is based on a time-limited rebate offer! A sales rep suggested that I arrive at the store really early on the day they post ads if I want the item advertised.

Newegg has been good to me. Their prices have been good, their shipping has been fast, and they have been quick to make amends the very few times they have screwed up. Never-the-less, I believe they should be held accountable for practices that are deceptive.

In short, rebates lead to all kinds of problems for consumers, and I would not miss them at all if they disappeared off the face of the planet forever.

[ Parent | Reply to This ]

OT: Raincheck/Supply rant.[ Parent | Reply to This ] (none / 0) (#24)
by foxyshadis1 on Wed Jun 15, 2005 at 12:59:02 AM PDT

I haven't seen a computer/electronics retailer (Best Buy, Compusa, Circuit City, etc) give sale rainchecks in years, and not just for rebates - they'll make up any bullshit reason why they can't give it to you or just shrug you off with "we don't give those out". (Local and distant stores.) I can understand it with old items that they're shoveling out to make room for new models, but when Best Buy was out of linksys routers that were the huge front-page item on the second day, and the manager told me it was just to get me to come to the store, I said I guess you won and walked out.

That was a couple years ago, when wireless was pipin' hot and fresh, but a $20 discount and $10 rebate couldn't have brought out that many people on a sunday.

[ Parent | Reply to This ]

Just say no to rebates[ Reply to This ] (none / 0) (#27)
by Anonymous User on Wed Jun 15, 2005 at 07:40:54 AM PDT

I agree with the earlier anonymous users who said to avoid rebates all together. Doing the work to copy receipts and fill in rebate forms is only worth it on large rebates, and you probably won't see your money back for several months (if ever). Chasing after rebates is an ineffective use of time. Rebates offered by the stores themselves are rediculous. The store should knock it off the price. Manufacturer rebates are not the store's fault, but are simply a way for the manufacturer to make more money. Thanks for reading my vent on this subject. I will continue to read ads for the non-rebate price, and using that to make my puchase decisions. If everyone did that, the practice would stop.

[ Reply to This ]

Ya all need some perspecitve here![ Reply to This ] (none / 0) (#28)
by Anonymous User on Wed Jun 15, 2005 at 10:30:34 AM PDT

When dealing with rebates, you have to read all of the fine print before buying. Palm also uses the exact same rebate type offer for a service ie save $100 on software purchases but you have to purchase a service that costs well over the rebate. I have purchased quite a few things from NewEgg. They have been handled very well. A rebate from ATI on an All in Wonder card required a specific number that was no where to be found on the retail box. Calling NewEgg, they couldn't find it either. They immediately gave me a $50 credit. Yes, they should make that more clear, but overall, they have been very stratight forward and very customer orientated. I will definitly continue to use them but, as always, read any links and/or fine print on any rebates. They are ten times easier to deal with than the likes of CompUSA, Fry's or Best Buy at their retail outlets. That is really a plus.

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No discussion's complete without buyer beware.[ Parent | Reply to This ] (none / 0) (#31)
by foxyshadis1 on Wed Jun 15, 2005 at 03:12:04 PM PDT

Thanks, I was getting disappointed that none of your type were responding. The problem in this situation is that it looked like NewEgg was intentionally trying to give the impression that the rebate had no strings at all. It'd trap most customers because the vast majority of rebates have the same terms: Send us the receipt and UPC, and we might send you your money. In much the same way people don't check rebate terms at the store until they get home. Yes, a buyer could distrust every retailer, but what's the point of buying there if you assume they're going to screw you over any way they can?

Notice also that all the rebate said was "$100.00 Mail in rebate" rather than (at the time) any form of "click here to see details" or subscription or anything remotely connected.

Of course half the griping is with the institution of rebates, not this one incident.

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Rebates are a game - and I win![ Reply to This ] (none / 0) (#29)
by rodak on Wed Jun 15, 2005 at 11:36:05 AM PDT

Yeah, they're a game, they're a hassle, but in the long run, you *can* come out WAY ahead. Over the years, I've done thousands of dollars worth of rebates, and I can count on the fingers of one hand the ones that never came in. 12 rebates for $160? Dude, you're wasting your time! $10 is about the minimum amount I ever bother with -most are $20-$30 or more. I just got a $70 check from Canon for a Camera/Printer purchase. The camera I was going to buy anyway, the printer cost me $70, so it was essentially free.

Rebates are high-dollar because such a large percentage of people either never send them in, or send them in incorrectly, so it's people like me who reap the rewards. If they ditched them entirely, and put the cash they would have paid out toward regular price reductions, that $70 printer would go for, maybe, $65.

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A Message from Newegg.com[ Reply to This ] (none / 0) (#30)
by Anonymous User on Wed Jun 15, 2005 at 02:18:25 PM PDT

Greetings Everyone!

Thank you everyone for posting such great feedback. We truly appreciate your honesty, as it allows us to learn from our mistakes to better our business practice and ourselves.

Nonetheless, we would like to address the current issue at hand. Unfortunately, an error did occur, which truly disappoints us, and I'm sure some of our customers as well. Regardless, this rebate in question was not intentionally posted on our site to mislead our valued customers. This confusion was a result of "human error," which everyone and every company is susceptible to.

At this time, we hope this customer that has written to Mr. Foster, the author of this article, is willing to contact us to further discuss the situation and possibly resolve the issue at hand. Is so, please feel free to email me at, williamlazaro@newegg.com, or contact me by phone at 800-390-1119, direct extension 2051.

Thank you all once again for your time and valuable input.

Rest assured that Newegg would always strive for complete and total customer satisfaction.

Sincerely,

William Lazaro
Newegg Customer Support
williamlazaro@newegg.com
Phone: 800-390-1119, ext 2051
Fax: 909-395-8907

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Good to hear from you but ....[ Parent | Reply to This ] (none / 0) (#33)
by Anonymous User on Thu Jun 16, 2005 at 07:17:08 AM PDT

Any comment on why your company didn't work with the user the first time he contacted newegg.com? Or does it take an InfoWorld columnist to get results?

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A suggestion[ Parent | Reply to This ] (none / 0) (#35)
by tcsbiz on Thu Jun 16, 2005 at 05:20:36 PM PDT

I have a suggestion for you. You should post a general apology on your website and credit the account of any customer who made the purchase for the amount of the rebate. This would show good faith.

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