Cash-back and bonus product schemes involve retailers offering customers money back or an additional free item upon the purchase of particular products, such as electrical goods and whitegoods.

These offers may sound attractive. However, if you fail to follow the manufacturer’s redemption process, you may not qualify for the cash back or bonus product.

Fact: many consumers are caught out by the terms and conditions of these offers and fail to make valid claims.

Cash-back schemes

In a cash-back scheme you may, for example, see a computer advertised at $899, after $100 cash back. You will have to pay the retailer $999 but, as an incentive, the manufacturer provides a $100 cash-back voucher.

This is not a straight price discount. You will need to follow the manufacturer’s claims process, which normally involves registering your claim for the cash back and providing proof of purchase (e.g. legible copies of receipts and product serial numbers).

The terms and conditions of cash-back offers often stipulate long waiting periods before claims are processed. If you have adhered to the manufacturer’s claims process, you will receive a partial refund of $100 after the stipulated waiting period.

Bonus product offers

Advertisements and in-store sales promotions sometimes include offers for bonus products. These products are not provided by the retailer at the time of purchase, but can be redeemed from the manufacturer after the sale.

For instance, a digital camera advertised at $699 may be sold with a bonus tripod valued at $129 via redemption. To redeem the free tripod, you will need to comply with the manufacturer’s instructions on making a claim.

How to avoid getting caught out

• Shop around for products and check prices in other stores. Make sure the deal is right for you before accepting a cash-back or bonus product offer.
• Read the terms and conditions of cash-back and bonus product offers very carefully.
• Check the expiration date of the offer, and ensure you understand what is required to make a claim.
• Consider any costs associated with lodging a claim (e.g. the cost of mailing your claim).
• Ensure you follow the instructions and note the waiting period that applies before you receive your cash back or bonus product. Manufacturers generally provide information about their redemption process on their website.
• Retain receipts and other required information under the terms and conditions of the offer.
• Submit the paperwork required promptly to redeem the offer. Consider using registered post, which will enable you to prove that you sent your claim on time.
• Mark in your calendar when you expect to receive the cash back or bonus gift.

What to do if you do not receive your cash back or bonus product on time

Follow it up with the manufacturer. If they do not deal with your inquiry to your satisfaction, you can also lodge a written complaint via the Consumer Affairs online complaint form.

Alternatively, you can call the Consumer Affairs Helpline on 1300 55 81 81.