Improving functioning of eCommerce Cashback Programs

Below are some of the key solutions proposed by you to issues regarding eCommerce cashback programs. Kindly review the same and if you have any additional solutions, please share.

We look forward to your inputs!

Ecommerce cashback program – solutions

1.Terms and conditions of cashback programs should be clearly mentioned to the users and there should be no ‘finer details’
2.Cashback programs should only be run in accordance to the government regulations
3.Consumers should be given enough time to use the cashback they receive in their accounts
4.Companies which promise cashback but do not give it to the customer should be pulled up by the regulator and fined
5.Consumers should be given a choice of getting the cashback in their wallets or bank account
6.Cashback should not be used as a mechanism to manipulate prices and fool the customers
7.Whenever the rules of cashback are changed, users should be promptly notified
8.Conditions of usage of cashback should be clearly explained to the customer before he avails it
9.Department of Consumer Affairs should lay down a strict code of conduct against this misleading practice

Issues raised by consumers on eCommerce Cashback Programs
1.These cash back programs have a lot of terms and conditions attached to them
2.Cashbacks are wrongly being given to sell substandard products to consumers
3.Lot of times unnatural competition is brought by cashbacks
4.Even though the cashback giving company is registered separately and FDI policy says platform cannot influence prices directly or indirectly, it continues
5.Cashbacks have a very short ‘use by’ life
6.Many products promise a cashback but do not actually provide it
7.The cashback is credited on to the e-wallet and not to the consumer’s bank account.
8. Cashback is the mechanism through which eCommerce sites manipulate prices and discounts. more  

View all 68 comments Below 68 comments
Cashback period should be fixed item 3. more  
Cash back should not be reversed on cancellation of an order. A small administrative charges can be levied if the cancellation is due to the buyer. more  
Articles about the cash back offers should be published in your news letter more  
Majority of Cash back offers are always words oriented. It should be action oriented. A research on customer opinion about this cash back in the need of the hour. more  
In some cash back programs only a percentage of the accrued points in the wallet are usable per transaction. (Esp. Airline Booking websites)
In essence no one will be able to use the points benefit within the expiry period as you will not by flying every week in a month.
This is plain deception and cheating! Moreover the administration charges often add to the purchase which wil always be more than the discount availed.
Suggestion:
1.The Term "CASHBACK" can be restricted in usage to mean only cash deposited in the bank as refund
It should be barred from usage for wallet cash back or e cash

2. restrictions on using wallet cash per transaction is an unfair trade practice and must be barred more  
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