New Jersey’s Division of Criminal Justice has charged a state resident with masterminding a coupon fraud scheme that netted $800,000 from manufacturer coupons. It’s the latest—and most dramatic—development in coupon fraud enforcement this month.

Meanwhile, eBay has restricted online auctions of coupons, and marketers are preparing for new coupon coding standards that take effect January 2005.

New Jersey officials charged Jordanian-born Abdellatif Yasin Aljuneidi, 38, with first-degree money laundering and theft by deception. Aljuneidi is at large after posting a $400,000 bond and missing a March court date. He faces up to 30 years in state prison and a fine up to $650,000, according to the state.

The Money Laundering Section of the Financial Crimes Bureau worked with non-profit Coupon Information Corp. to uncover the scheme running in New Jersey, New York, Pennsylvania and South Carolina from April 2000 through October 2003.

Aljuneidi allegedly convinced dozens of retailers to participate in a “redemption program” that gave storeowners cash payments for misredeeming manufacturer coupons, the state said.

Aljuneidi allegedly sent fraudulent applications to an undisclosed coupon clearinghouse, grossly inflating the size of participating stores and their coupon-related sales in order to explain the large amount of coupons submitted for redemption by each store.

The submissions on behalf of 17 stores netted $800,000 in reimbursement from the clearinghouse. Aljuneidi allegedly demanded 50% or more of the reimbursements from retailers, whose stores were ineligible for redemption funds. Aljuneidi was first arrested in October 2003, the state said.

Meanwhile, eBay has banned auctions of electronic and bulk coupons to help reduce coupon fraud, including those delivered by mail; all coupons sold through the site must be physically delivered to a mailing address. Also banned are bulk sales of more than 20 coupons for one product, or 100 mixed coupons, because such sales have higher potential for abuse. EBay also limited the sale of “free product, no purchase required” and home-printed Internet coupons to two per listing. Expired coupons can no longer be auctioned on the site, although eBay reserves the right to allow auctions of old coupons as collectibles.

The Grocery Manufacturers of America and the Food Marketing Institute had asked eBay in August to curb coupon auctions. The associations helped San Jose, CA-based eBay set the new guidelines announced March 2. Several retailers, including Kroger Co. and Publix, have stopped accepting computer-generated coupons in some stores because it’s too hard to distinguish legitimate online coupons from frauds. A rash of counterfeit couponing began in Atlanta in November and spread from there, primarily in the Southeast.

The auction site will create three categories for coupons (in Food and Wine, Health and Beauty and Gift Certificates segments) to make it easier for consumers—and law-enforcement officials—to find listings. The restrictions are posted under “Manufacturers’ Coupons” on eBay’s “Prohibited and Restricted Items” list.

EBay also designated an individual in its fraud investigations department to work with packaged goods representatives to monitor coupon listings.

Meanwhile, packaged goods manufacturers and retailers are getting ready to adopt 13-digit EAN codes by yearend as they prepare to adopt 14-digit Global Item Trade Numbers (GTINs) in 2005.

Those global codes will replace the 12-digit UPCs that U.S. marketers have used on products and coupons since 1971. GTINs will give marketers a standard platform to use globally, cutting costs and improving stock keeping and marketing.

Retailers and manufacturers have until January 2005 to update their computer systems to scan EAN codes, according to a mandate from the Uniform Code Council, which oversees product coding. The Association of Coupon Professionals will address upgrades and GTINs at its March 29-31 conference in New Orleans.

New Jersey’s Division of Criminal Justice has charged a state resident with masterminding a coupon fraud scheme that netted $800,000 from manufacturer coupons. It’s the latest—and most dramatic—development in coupon fraud enforcement this month.

Meanwhile, eBay has restricted online auctions of coupons, and marketers are preparing for new coupon coding standards that take effect January 2005.

New Jersey officials charged Jordanian-born Abdellatif Yasin Aljuneidi, 38, with first-degree money laundering and theft by deception. Aljuneidi is at large after posting a $400,000 bond and missing a March court date. He faces up to 30 years in state prison and a fine up to $650,000, according to the state.

The Money Laundering Section of the Financial Crimes Bureau worked with non-profit Coupon Information Corp. to uncover the scheme running in New Jersey, New York, Pennsylvania and South Carolina from April 2000 through October 2003.

Aljuneidi allegedly convinced dozens of retailers to participate in a “redemption program” that gave storeowners cash payments for misredeeming manufacturer coupons, the state said.

Aljuneidi allegedly sent fraudulent applications to an undisclosed coupon clearinghouse, grossly inflating the size of participating stores and their coupon-related sales in order to explain the large amount of coupons submitted for redemption by each store.

The submissions on behalf of 17 stores netted $800,000 in reimbursement from the clearinghouse. Aljuneidi allegedly demanded 50% or more of the reimbursements from retailers, whose stores were ineligible for redemption funds. Aljuneidi was first arrested in October 2003, the state said.

Meanwhile, eBay has banned auctions of electronic and bulk coupons to help reduce coupon fraud, including those delivered by mail; all coupons sold through the site must be physically delivered to a mailing address. Also banned are bulk sales of more than 20 coupons for one product, or 100 mixed coupons, because such sales have higher potential for abuse. EBay also limited the sale of “free product, no purchase required” and home-printed Internet coupons to two per listing. Expired coupons can no longer be auctioned on the site, although eBay reserves the right to allow auctions of old coupons as collectibles.

The Grocery Manufacturers of America and the Food Marketing Institute had asked eBay in August to curb coupon auctions. The associations helped San Jose, CA-based eBay set the new guidelines announced March 2. Several retailers, including Kroger Co. and Publix, have stopped accepting computer-generated coupons in some stores because it’s too hard to distinguish legitimate online coupons from frauds. A rash of counterfeit couponing began in Atlanta in November and spread from there, primarily in the Southeast.

The auction site will create three categories for coupons (in Food and Wine, Health and Beauty and Gift Certificates segments) to make it easier for consumers—and law-enforcement officials—to find listings. The restrictions are posted under “Manufacturers’ Coupons” on eBay’s “Prohibited and Restricted Items” list.

EBay also designated an individual in its fraud investigations department to work with packaged goods representatives to monitor coupon listings.

Meanwhile, U.S. packaged goods manufacturers and retailers are upgrading equipment by yearend to read the 13-digit EAN (originally, “European Article Number”) codes on non-U.S. product packages. International retailers and CPGs already can read the 12-digit UPCs on U.S. products.

The global synchronization is intended to simplify stock keeping for global marketers. U.S. manufacturers don’t need to change their UPCs, which have been used on products and coupons since 1971. “We’re trying to make it easier for global compatibility to work,” says Tom Brady, UCC VP-automatic identification and data capture.

The initiative, dubbed Sunrise 2005, eventually will affect coupon coding because of the variable number of digits used in each code to identify the manufacturer. That has spurred a separate effort to revise coupon coding. The Joint Industry Coupon Committee (comprised of the UCC, Food Marketing Institute and Grocery Manufacturers of America) this spring will issue a proposal and begin testing new coding that will give retailers, manufacturers and coupon processors a consistent platform. The Association of Coupon Professionals will address code upgrades at its March 29-31 conference in New Orleans.

(Promo) New Jersey’s Division of Criminal Justice has charged a state resident with masterminding a coupon fraud scheme that netted $800,000 from manufacturer coupons. It’s the latest — and most dramatic — development in coupon fraud enforcement this month.

Meanwhile, eBay has restricted online auctions of coupons, and marketers are preparing for new coupon coding standards that take effect January 2005.

New Jersey officials charged Jordanian-born Abdellatif Yasin Aljuneidi, 38, with first-degree money laundering and theft by deception. Aljuneidi is at large after posting a $400,000 bond and missing a March court date. He faces up to 30 years in state prison and a fine up to $650,000, according to the state.

The Money Laundering Section of the Financial Crimes Bureau worked with non-profit Coupon Information Corp. to uncover the scheme running in New Jersey, New York, Pennsylvania and South Carolina from April 2000 through October 2003.

Aljuneidi allegedly convinced dozens of retailers to participate in a “redemption program” that gave storeowners cash payments for misredeeming manufacturer coupons, the state said.

Aljuneidi allegedly sent fraudulent applications to an undisclosed coupon clearinghouse, grossly inflating the size of participating stores and their coupon-related sales in order to explain the large amount of coupons submitted for redemption by each store.

The submissions on behalf of 17 stores netted $800,000 in reimbursement from the clearinghouse. Aljuneidi allegedly demanded 50% or more of the reimbursements from retailers, whose stores were ineligible for redemption funds. Aljuneidi was first arrested in October 2003, the state said.

Meanwhile, eBay has banned auctions of electronic and bulk coupons to help reduce coupon fraud, including those delivered by mail; all coupons sold through the site must be physically delivered to a mailing address. Also banned are bulk sales of more than 20 coupons for one product, or 100 mixed coupons, because such sales have higher potential for abuse. EBay also limited the sale of “free product, no purchase required” and home-printed Internet coupons to two per listing. Expired coupons can no longer be auctioned on the site, although eBay reserves the right to allow auctions of old coupons as collectibles.

The Grocery Manufacturers of America and the Food Marketing Institute had asked eBay in August to curb coupon auctions. The associations helped San Jose, CA-based eBay set the new guidelines announced March 2. Several retailers, including Kroger Co. and Publix, have stopped accepting computer-generated coupons in some stores because it’s too hard to distinguish legitimate online coupons from frauds. A rash of counterfeit couponing began in Atlanta in November and spread from there, primarily in the Southeast.

The auction site will create three categories for coupons (in Food and Wine, Health and Beauty and Gift Certificates segments) to make it easier for consumers — and law-enforcement officials — to find listings. The restrictions are posted under “Manufacturers’ Coupons” on eBay’s “Prohibited and Restricted Items” list.

EBay also designated an individual in its fraud investigations department to work with packaged goods representatives to monitor coupon listings.

Meanwhile, packaged goods manufacturers and retailers are getting ready to adopt 13-digit EAN codes by yearend as they prepare to adopt 14-digit Global Item Trade Numbers (GTINs) in 2005.

Those global codes will replace the 12-digit UPCs that U.S. marketers have used on products and coupons since 1971. GTINs will give marketers a standard platform to use globally, cutting costs and improving stock keeping and marketing.

Retailers and manufacturers have until January 2005 to update their computer systems to scan EAN codes, according to a mandate from the Uniform Code Council, which oversees product coding. The Association of Coupon Professionals will address upgrades and GTINs at its March 29-31 conference in New Orleans.