Entrepreneurship & Small Business

Cashback or gift cards to customers

  • Last Updated:
  • Jul 21st, 2014 12:44 am
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Member
Jul 6, 2010
270 posts
17 upvotes
Gatineau

Cashback or gift cards to customers

Hi,

I'm just wondering if there's any laws or regulations against giving customers cash back or gift cards for posting reviews of your company.
I'm looking to give cash or gift cards for each review that is posted about my service.

I will only be giving cash back or a gift card if they post a review.

If they don't post a review they don't get the cash back or gift card.

Is there anything I should be aware of? Any issues?
7 replies
Deal Expert
User avatar
Oct 19, 2003
20241 posts
8367 upvotes
Toronto (Bloor West …
Ottawa316's company was super awesome, I would use again!

(please PM me for my paypal address)
Deal Expert
User avatar
Jun 9, 2003
25310 posts
2536 upvotes
Markham, ON
if your product/service is good...be confident of word of mouth.
Member
Jul 6, 2010
270 posts
17 upvotes
Gatineau
Ok - does anyone have a serious reply?

My question is simple - Is there any law or regulation against giving people cash back or paying them only if they post reviews? My concern is this obviously can be seen as a form of bribery when it is in fact an honest incentive for people to post their positive experience.
Newbie
Aug 18, 2013
18 posts
4 upvotes
Ontario
Perhaps you should consult a lawyer. They would be the best ones to answer your question.
Member
Jul 29, 2010
269 posts
350 upvotes
Toronto
ottawa316 wrote: Ok - does anyone have a serious reply?

My question is simple - Is there any law or regulation against giving people cash back or paying them only if they post reviews? My concern is this obviously can be seen as a form of bribery when it is in fact an honest incentive for people to post their positive experience.
This would be a form of advertising / promotion. It's similar with "open an account with The Bank and get a tablet or $$$". As long as you publish / make available the basic rules you'll apply to determine who is eligible ("the fine print") - it should be no problem.
Deal Fanatic
User avatar
Jan 11, 2008
7816 posts
1290 upvotes
GTA
Although not dealing with the legal/regulation side of things, I am assuming you are only offering the incentive for positive reviews? As a customer, if I saw a business doing that I wouldn't trust that any of the reviews were truthful as I would assume people would post positive reviews for the incentive.
When your mind says give up, hope whispers "one more try"
Never say never
Deal Fanatic
Jul 7, 2004
6948 posts
2695 upvotes
You're asking for a review, you didn't say it has to be positive, there is nothing wrong with doing that.
Ideally you' want a rewards system that gives them credit towards future purchases rather than a cash back.
Tie it in witha referral program.
There's scripts out there that have them all combined. Points for referring friends. Points for leaving reviews. Points for making purchases.
Customer then redeems point for future purchases.
I'm using this, but didn't include the interview one because next thing you know you have Joe Smoe leaving review for 50 products he didn't buy and you have to keep track of it.

The internet is a very shady place, stuff like this is the least of your worries. No one has time to investigate things like this. You could make your own damn reviews and no one is ever going to know.

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