When it comes to promotional coupons, the food industry often follows a rather narrow, unenlightened course.
For example, the industry has long needed electronic coupon clearing to replace the archaic hand-counting method of processing redeemed coupons. Though the technology is available, manufacturers can't seem to agree on a standard method for doing this.
Now, some retailers are demonstrating their ability to block progress by refusing to accept legitimate coupons downloaded from the Internet. These coupons represent a small, but fast-growing segment of the coupon world.
Of course, following the wave of fraud visited upon Atlanta and other markets over the summer, it is understandable that retailers would be wary of coupons obtained online. That's especially true of retailers directly impacted like Publix, Harris Teeter, Price Chopper and others.
However, rejecting these coupons across the board is not the right response. For one thing, the lion's share of the recent fraud concerned coupons for free product -- which has always been a questionable practice. These coupons were apparently taken from the physical world, put online, sold via auction sites and other venues, and e-mailed to buyers.
It makes more sense to reject those free-product coupons, from the Internet or not, while continuing to accept coupons for cents-off discounts made available by such legitimate organizations as CoolSavings and Coupons Inc., as those organizations have proposed. Indeed, I learned that Publix did briefly adopt that no-free-product coupon policy in some Florida stores before reversing course and banning all Internet coupons.
Another option -- observed by an SN staffer at an independent in New York -- is to post coupons found to be fraudulent at the checkout as a guide to checkers. A little training here can go a long way. And I believe Food Marketing Institute and Grocery Manufacturers of America are doing the right thing by demanding that eBay stop allowing auctions of coupons on its site, especially considering resale of coupons is expressly prohibited on the coupons themselves.
I can understand that retailers don't want checkout lines slowed down by coupon evaluations, but sooner or later retailers are going to have to deal with Internet coupons. It's obvious that the Internet has become inextricably woven into the fabric of everyday life, and many consumers turn to it for all types of bargains and discounts, which should include coupons. Millions of Internet coupons have been successfully distributed. Moreover, the Internet can be a powerful tool enabling manufacturers and retailers to target the right consumers for their coupon promotions, rather than just wastefully sending out mass supplies through the newspapers. The food industry can save a considerable amount through more targeted campaigns.
Coupon fraud is nothing new and well pre-dates the Internet, though it's true that the Internet and computer technology have exacerbated the problem by making it easier to create and disseminate bogus coupons. What's needed is a standard for Web coupons -- and coupons in general -- that can serve to defeat fraud. As the industry moves to standardize such areas as data synchronization and the electronic product code, coupons should be added to the list. In the meantime, retailers should find a way to keep accepting cents-off coupons from legitimate sources.
