Originally Posted by
Steve in Olympia
This just doesn't add up. The coupon explicitly states: "RETAILER: We will reimburse you for the retail price of the specified product up to $4.99." (emphasis added)
The coupon also says: "CASHIER: Enter retail price here:___________ Maximum value $4.99."
This "legal lingo" is there for a reason. It is designed to prevent the retailer from collecting $4.99 from Coca-Cola when the item really sells for only $3.00.
I visited my local Safeway store this morning. By chance, the Coca-Cola guy was stocking the shelves. He told me that Coke sets the wholesale price and Safeway sets the retail price. (There are significant anti-trust implications if the manufacturer dictates the retail price. That's why it is called the "Manufacturer's Suggested Retail Price" (MSRP)).
"Free" coupons redemptions are reimbursed to the retailer in a number of ways. The retailer is supposed to enter the actual price; if they do, they are reimbursed on the price they enter (up to the stated limit). If they do not, every "free" coupon has a default value that determines what the retailer is reimbursed; this does not have to be the maximum value stated and is often calculated on the average price paid (including discounts) for the product being given away. Yes, this does give retailers the opportunity to cheat a bit by writing in a value higher than they actually charged, however, manufacturers also reserve the right to audit coupon redemptions and can fine retailers for blatent fraud (or at least get them to stop doing it). It wouldn't be tough to write a program to show average $ amount of free coupons redeemed by retailer and then inquiring into retailers that are consistently at or near the maximum value.