I purchased a Connect 3D 2GB 2.0 USB Drive from Buy.com almost 6 months ago. January 25, 2007. The main reason I chose this one instead of any one of dozens of others was because of the $50 mail in rebate attached to it.

Upon receiving the rebate, I promptly filled it out and mailed it in (amazingly, I remembered).

On April 2, 2007 I received this reply from Connect3D:

Dear ART KAUFFMAN:

Thank you for your purchase of a Connect3D product. We have received
your Connect3D rebate and are processing your claim. Please allow 6-8 weeks
for processing. If you would like to check the status of your claim online, please refer
to www.rebate-zone.com/Connect3D. Your Claim ID is ########.
Again, thank you for your patronage.

This is an automatically generated email that is unable to accommodate replies.
Please be aware that you have not been added to an email list.

Connect3D Rebate Center
Customer Care

It has now been 15 weeks later. My online rebate claim status still reports “Received, Submission is being processed”. And, more telling, the main rebate page for Connect3D now reads:

Due to the lack of payment from our distributor, there has been a significant delay in rebate payments for products purchased at Buy.com. Connect3D apologizes for this delay. Connect3D is currently working on a solution and hopes to pay rebates as soon as possible. Please do not call our rebate processing center, as payment of the rebate is out of their control.

Right. Connect3D is blaming the distributor for insufficient funds? Hmm, something is not adding up here.

First step: I fired Connect3D some fiery emails. None were replied to.

Second step? Buy.com. The Federal Trade Commission has ruled that retailers should take responsibility for their manufacturers’ rebates. Buy.com is not doing this. In fact, they’re doing nothing. I sent Buy.com an email on July 11, 2007. They sent me an automated email saying they would reply within 24 hours. Bull. It’s been 5 days, and nothing.

Third step: I contacted the Better Business Bureau and filed a case against Connect3D. BBB gave Connect3D until July 27, 2007 to respond so I’ll have to play the waiting game a little longer there.

From seeing thread after thread of forums, I know that Connect3D hasn’t paid a single rebate. It was obviously a ploy to liquidate their inventory before the company went under. I assume the only big shot to go after now is Buy.com. And they are remaining silent.

Here’s the question. Should retailers be held responsible for scam rebates of their manufacturers? Or should the manufacturer be blamed, and the customer receive no compensation in cases where the manufacturer has gone bankrupt?

Update (7/18): I finally received a reply from Buy.com after a second email:

Dear Art,

You recently purchased an item from Buy.com in which Connect 3D offered
a manufacturer’s rebate. We regret learning that Connect 3D has failed
to honor a rebate offered to you.

Reports are circulating that Connect 3D is now insolvent and no longer
performing any business functions. We are investigating these reports.
Indeed, before allowing Connect 3D rebate forms to be posted on our
website, Buy.com took the additional steps of requiring financial
statements from Connect 3D and obtaining a contractual commitment from
Connect 3D to pay Buy.com directly for wrongly-rejected or
extensively-delayed rebates. This contractual commitment allows Buy.com
to bypass the rebate center and invoice Connect 3D directly on behalf of
those affected customers who have contacted us directly.

Buy.com has submitted demands to Connect 3D to perform on its
contractual obligations. Connect 3D has ignored those requests and has
refused to pay Buy.com for any of the Connect 3D rebates owed to our
customers. As a result, on July 6, 2007 Buy.com filed a lawsuit in
Orange County Superior Court against Connect 3D and others (including
without limitation, Connect 3D’s principal officers, Marc Levaggi and
Mike Walsh, Connect 3D’s distributor, Wintergreen Systems and Connect
3D?s affiliated entities) for failure to honor commitments made to
Buy.com and its customers. Litigation is unpredictable, costly and time
consuming. However, it’s Buy.com’s belief that Connect 3D and the other
defendants in this litigation should be required to honor your rebate.

No assurance exists that Buy.com will be successful in this litigation
or in attempting to enforce any judgment that may ultimately be
obtained.

We sincerely apologize for any hardship or inconvenience resulting from
Connect 3D’s failure to honor your rebate. Buy.com wants to remain your
favored internet retailer. While we pursue this matter, please accept
the gift certificate that we are sending you in a separate email as an
indication of our sincere regret.

Sincerely,

Buy.com

So all I get is a rubber-ducky $10 gift certificate consolation prize. I’ll keep you posted on any updates.

Update (8/7): After a lot of badgering, I keep getting the same email from Buy.com (or a similar form to it). Looks like we’re striking out on this one, folks. Don’t buy from Buy.com!

Dear Art,

Thank you for understanding the matter. We have filed a lawsuit against Connect 3D already as we said, and we are still working on the case.
Once this is resolved,
we will notify you via email.
We apologize for any inconvenience. Thank you for your understanding and  your patience in the matter.

Sincerely,
Irene
buy.Com