New York attorney general Elliott Spitzer is scrutinizing online rebate companies after getting 200 complaints about UrbanQ.com, Cedarhurst, NY, which allegedly has not delivered on promises.
Spitzer has warned state residents that some “rebate” firms mark up product prices before offering rebates of 50 percent to 100-percent, assuming that most purchasers won’t redeem them.
A similar firm, Cedarhurst-based Cyberrebate.com, last year filed for bankruptcy protection after racking up more than $90 million in rebate obligations to about 200,000 consumers. Spitzer warned that his office can’t intervene once a firm files for bankruptcy.
The AG has proposed a “Rebate Protection Act” to prohibit “excessive, time-staggered rebates” unless the merchant has posted a bond sufficient to cover the amount of potential consumer loss. No bill has been formally introduced in New York’s senate or assembly.
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