Pepsi, Doritos among major brands hit by phony coupon scam
A Missouri mom who bit on an offer for free Doritos and Pepsi-Cola products is one the latest victims in a nationwide counterfeit coupon scheme.
Claire N. of Kansas City recently received an e-mail that contained an attachment with printable coupons for the free chips and 12-packs of Pepsi-Cola soft drinks. The full color coupons had the word FREE in bold letters written across the top and indicated they didnt expire until December 2010.
But when Claire tried to get her free Doritos, she learned the coupon was worthless.
The cashier said the coupon was not valid because the store doesnt get the money back from Frito-Lay, she told us. It didnt stop me from buying the product, but it disappointed me because I thought I would get it free.
Claire discovered the coupon for the free Pepsi-Cola products was a sham, too. The clerk said theyd had other coupons like that and they didnt accept them, either.
The coupon caper shocked this savvy Midwest shopper. Here I was thinking I was going to get a free product and I didnt, Claire said. I feel a little bit ripped-off.
ConsumerAffairs.com learned that Claire is among a growing number of shoppers duped in this scheme that is spreading coupons not created or authorized by Frito-Lay or Pepsi-Cola through cyberspace.
Gone viral
Were hearing from people nationwide, said Frito-Lay spokeswoman, Aurora Gonzalez. Frito-Lay and Pepsi-Cola are sister companies under the PepsiCo corporation umbrella. This has gone viral. Its being passed around in e-mails and were seeing it spread in a way weve not seen before.
The company, however, has seen similar types of coupon scams before, Gonzalez said.
This type of coupon showed up in the middle of last year and we were able to pull them off a Web site and control it, she said. But what makes this coupon so disconcerting for us is that its moved from an online source to a viral environment. And because of this new viral nature, we have no idea who is behind it and were seeing it all across the country.
To combat this widespread problem, the company is trying to educate consumers, clearinghouses, and retailers about the fraud.
Were fortunate that the guy putting our products on store shelves is a Frito-Lay person, Gonzalez said. We have resources on the front lines to let stores know about this. We have a direct channel to retailers.
Our hope is to communicate as much as possible and get consumers educated so this will stop, she added.
The companys next wave of communication will be with flyers that retailers can post in their stores, Gonzalez said.
But there are thousands and thousands of stores. And there have been a significant number of stores that were not aware this coupon was a fraud and have taken it. Those coupons come back to us. Theres a financial implication for us.
How to tell
Is there any way retailers and consumers can spot the difference between the counterfeit coupons and real ones?
Gonzalez said the phony coupons have several tell-tale signs, including:
They dont require consumers to purchase any products. Real coupons almost always require shoppers to buy a product in order to get a free one;
They state the maximum value is around $5.00. But the maximum value of a single bag of Doritos, for example, is never $5;
They usually have a one-part UPC code. Real coupons have a two-part UPC codes that can be tracked;
They dont refer to a specific ounce/weight for the product. Real Doritos coupons, for example, always refer to the specific bag size;
The mailing address to redeem the coupons is not correct. The mailing address for the phony Doritos coupon is Dallas, Texas. The address on the real Doritos coupons is Del Rio, Texas.
Frito-Lay and Pepsi-Cola arent the only companies targeted in these counterfeit coupon schemes, though.
The Coupon Information Corporation (CIC) said there are a number of fake coupons now in circulation, including ones for products made by Hanes, Procter & Gamble, Coca-Cola, Folgers, and Ben and Jerrys Ice Cream.The non-profit CIC said making counterfeit coupons is a crime that can be prosecuted by federal, state, and local law enforcement agencies. And the penalties can be severe. The longest prison sentence in one of these cases was 17 years, the organization said. The highest financial penalty was $5 million and prison sentences of three to five years are not uncommon.
The CIC is now offering a $2,500 reward for information that leads to the successful prosecution of those responsible for producing many of the phony coupons, including the ones for the free Doritos. The CIC considers that coupon scheme widespread.
The CIC and Frito-Lay said consumers should be leery of any coupons that sound too good to be true, especially ones that promise free products. In most cases, manufacturers require consumers to buy a product in order to receive a free one.
Consumers should also be wary of any e-mails that contain PDF files with pages of printable coupons.
Were not sending out coupons through e-mails, Frito-Lays Gonzalez said. Thats not a practice we use. We market our coupons through reputable Web sites and in weekend circulars in newspapers.
So if you get our coupons through an e-mail, thats a red flag. Again, thats not a practice we use.
Sorry but ...
Frito-Lay has a message for customers like Claire, who got duped in this scheme.
We sincerely apologize for the disappointment and confusion this has caused, the company states on its Web site.
Gonzalez echoed that message. We dont want to disappoint our customers, she said.
Back in Missouri, Claire told us shes going to do more research the next time someone e-mails her some coupons.
If you get one and are concerned whether its legitimate or not, Id recommend going to the stores customer service area first before picking up the product, she said. But my message to consumers is beware of these types of coupons.