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Store specific. New Coupons. Featured Coupons All Coupons So how do they get away with it? The service fees cover their cost of maintaining the website and clipping, grouping, managing and mailing the coupons. The costs can range from under a dollar to monthly subscription rates. There is no type of legislation that I know of that says this kind of service is illegal.
However, what the Federal Trade Commission states is, "Selling or transferring coupons to a third party violates most manufacturers' coupon redemption policies -- and usually voids the coupon.
Therefore, selling the service or buying from the service does not appear to be illegal, but the coupons that are mailed out are void and have no value and should not be redeemed. Technically, by using the coupons, some couponers are getting money for something that no longer has value.
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Most people that go to the expense of using coupon-clipping services or eBay are going to use the coupons that they have purchased, and it is doubtful that most cashiers will know if a coupon was clipped at home or bought through an online service. But for those who are concerned with what is ethical, the answer is clear -- buying and selling coupons is not ethical. In , eBay restructured its policies regarding coupon auctions.
Today, people selling coupons on eBay are not permitted to sell the labor it takes to auction off a coupon. Under eBay rules, the coupons themselves are the items being sold. There are also limits on how many coupons a single seller can sell. The allowed 25 coupons per month include multi-quantity listings.
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Prior to enforcing the stricter policies, eBay was averaging over , coupon auctions a day. That amount was reduced by 96 percent within the first year. Why do manufacturers or stores care if people buy coupons when the people are going to use the coupons to buy their products? For example, a company may want to test the amount of a coupon promotion within a limited area. It will then make future promotional determinations based on the results.
If someone collects multiple coupons and then sells them to people in other areas of the country, the test fails. The company may then be forced to redo the test at additional cost, or scrap future distribution of the coupon, which ultimately hurts shoppers. Stores and manufacturers want to keep control over the coupons that they distribute.
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It is wrong for couponers to ignore the redemption policies and it could result in companies cutting back on consumer coupons. The Coupon Information Corporation is a not-for-profit association made of manufacturers dedicated to fighting coupon fraud. When asked about buying coupons, the CIC states,.
Even if there is not a direct criminal penalty involved, both coupon buyers and sellers open the door to potential litigation when they buy or sell coupons because they are in violation of the "nontransferability" clause printed on all coupons distributed within the United States. The transfer makes a coupon void. Coupon sellers often include legal disclaimers stating that they are selling their time, a service, or even envelopes that just happen to contain coupons instead of the coupons themselves.