UNCASHED CHECKS ARE THE REAL PROBLEM (What Rebate? March)
I enjoyed your article on rebate issues facing promotionally active marketers and fulfillment companies.
One important distinction, however, is that the controversy is really about rebate checks that have been issued, but never cashed.
The term “unclaimed rebates” could be interpreted to mean rebate mail-in certificates distributed but not submitted — an interesting topic, but not one the states are challenging.
For the record, there are many reasons why rebate checks go “uncashed” and the quantities and percentages vary dramatically for a myriad of legitimate (and some suspect) reasons.
Here’s the bottom line: Regardless of what manufacturers and fulfillment houses claim, there are still 43 states that agree that uncashed checks constitute unclaimed property. And, according to those states, unclaimed property is escheatable in the absence of legal heirs or claimants.
Despite the fact that there have been some rather transparent attempts to limit liability with creative offer copy, the fact remains that somebody owes the money. Anti-limitation statutes of many unclaimed property laws certainly prevail and see through creative language on some of the forms.
The most common mistake made by rebate sponsors and fulfillment suppliers is spending millions of dollars on legal and accounting fees trying to either learn about the issue — or worse — challenge it.
Do these companies really believe they have more money to spend than 43 state treasurers and attorneys general?
With all due respect, we suggest a more pragmatic approach of working with a subject matter expert who understands all sides of the issue: Retailer, manufacturer, fulfillment and legislative perspectives in the category.
Hal Stinchfield
CEO and founder
Promotional Marketing Insights, Inc.
PR IS NEVER FREE
(Free Ink, March)
I just wanted to clarify some points in your story about Call in Europe.
We were not terminated; we mutually agreed to stop work with Call-in-Europe before our 60-day PR program was up.
The second time we worked with them, we did not recommend the December party Patrick wanted to do. We had three weeks to coordinate it. It was his idea. We were asked to assist with attracting media people. I am not a great believer in parties like this. I believe in setting up personal, one-on-one interviews with the media.
For $30,000 (the cost of the first retainer a year ago), Patrick got articles in the following publications, in addition to The Wall Street Journal: Chicago Tribune, France-Amerique, Greenwich Post, Greenwich Time, and Stamford Advocate.
I think for $30,000 he got a good shake.
Steve Simon,
CEO
SSPR
LOVE THAT COVER
(Cyber Stumping, January)
I just wanted to write this letter to tell you that I received a copy of your Promo magazine.
I was so impressed with the artist’s rendering of the different candidates. (Editor’s note: the artist is Drew Friedman.) What a wonderful job the artist did! All of the expressions were so good.
I also enjoyed your article, “Laughing All the Way to the Bank.”
Frank W. Butler
President
Catalina Yachts
Network
