Spiegel charges credit cards in coupon gaffe

invstg8r

Junior Member
Jul 2, 2001
17
0
0
Slighly off-topic, but I think this article from cnet.com might be of interest to coupon code users.


Spiegel charges credit cards in coupon gaffe
By Troy Wolverton
Staff Writer, CNET News.com

August 3, 2001, 4:20 p.m. PT

Just weeks after accusing customers of misusing its coupons, Spiegel has begun to charge customers' credit cards for the amount it says they owe.

The Downers Grove, Ill.-based catalog and online retail company is charging customers who "excessively misused" its coupons, said Spiegel spokeswoman Chris Crockett. Crocket declined to say how many credit cards Spiegel is charging or how much money the company lost.

"We're only charging for the amount of (coupons) that were used improperly," Crockett said.

But customers already are disputing the charges and Spiegel may have to answer to higher authorities. Customers have filed complaints with the Better Business Bureau and the situation prompted questions at the Federal Trade Commission and with MasterCard.

"The FTC would like to know more about Spiegel's practices, but hasn't made any determination about whether their practices violate the law," a commission representative said.

This spring, Spiegel's sent out coupons of $5 to $20 off to customers who bought its catalog or ordered products through it. Although the coupons were supposed to be for "one time use only," they did not have unique code numbers. Some customers repeatedly used the same code number if not the same physical coupon to order products at deep discounts or for free.

While many customers placed their orders over the phone, many heard about the discount via online message boards such as those on MyShoppingBoards.com.

Although customers say that Spiegel cancelled some orders, the retailer accepted and mailed out many others. But earlier this month, the company mailed dozens of customers, demanding money for the misused coupons and telling customers that it no longer wanted their business.

The Chicago Better Business Bureau has received three complaints from Spiegel customers regarding the matter and is awaiting a response from Spiegel to the customers' allegations, said Steve Bernas, director of operations at the Chicago Better Business Bureau. The company has 15 days to respond to each complaint, the first of which was filed on July 24.

"We have not received a position from Spiegel regarding the issue," Bernas said.

Meanwhile, MasterCard spokeswoman Sharon Gamsin called Spiegel's actions "unusual."

"I think we're going to have to look into it," Gamsin said.
 

thecollectivewi

Senior member
May 5, 2001
328
0
0
I'm sure some people on this board will get caught up in this. I remember the $20
off Spiegel coupon thread from awhile back. Hope this doesn't get locked before
people have a chance to see it.
 

csiro

Golden Member
May 31, 2001
1,261
0
0
Wow never seen a company do this before, but I think Spiegel is going to lose.
 

Startide Rising

Senior member
Oct 9, 1999
256
0
0
In a separate announcement, Spiegel had said it was doing this because it considered those coupon-using customers to be non-essential. Spiegel suggested that since those customers would probably not be repeat customers, it was not necessary to exercise "good will" and lose profit on those customers.
 

Doomer

Diamond Member
Dec 5, 1999
3,721
0
0
Not necessary to exercise "good will" ??????????????????????

Excuse me ? Have they ever heard of image? There's sux. They'll NEVER get my business.
 

Gmetech

Senior member
Jul 19, 2001
420
0
0


<< In a separate announcement, Spiegel had said it was doing this because it considered those coupon-using customers to be non-essential. Spiegel suggested that since those customers would probably not be repeat customers, it was not necessary to exercise &quot;good will&quot; and lose profit on those customers. >>

Non-essential... haha... yeah, the earth will be ok without them... lets have have them killed!

Seriously though, this is just crazy. So lets say this article makes it to a major newspaper somewhere... other people who didn't get in on this but would have had they known about it hear about this fiasco and the suits against Spiegel and they tell everyone they know who might be interested. Spiegel could lose a lot more customers than they planned on. I wonder if Spiegel is in financial trouble and this is a desperate measure, or they are just arrogant?.
 

csiro

Golden Member
May 31, 2001
1,261
0
0
Spiegel shouldn't be blaming the customers. The blame should be on the moron who thought up the whole Spiegel coupon scheme in the first place. If they didn't want everyone using the coupon codes, they should have at least personalized those codes. This is just arrogance on their part.
I don't think any business should consider anyone to be *non-essential* customers.
 

JahWren

Member
Dec 31, 2000
163
0
0
I went to their website's feedback page and gave them a piece of my mind - told them that although I was not one of the coupon users, that I had purchased from them in the past but that I would never do so again because I could no longer trust that if an order got bunged up that they would do right by me. I also told them that I have spread the news of their, &quot;the unessential customer is always wrong&quot; policy to all of my friends and family.

I suggest y'all do the same, because if spiegel gets away with this, the precedent that it would set is terrible for *any* kind of extreme-deal-hunting.
 

elektronic

Senior member
Jul 18, 2001
533
0
0


Can someone say private payments material?

They can kiss my ass if they think I'll ever buy anything from them.
Risk them charging my credit card extra? Hell No!

Resseler Rating: -5 (even though they ain't a reseller.

&quot;Spiegel was built on the concept that shopping at home is a great idea. And it's better than ever with Spiegel.com.&quot;

Yeah, right....
 
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