Super Couponing Tips: Buying coupons online is fraud

In last week's column, we discussed why it's never a good idea to purchase coupons online. The terms on many state that they are void if sold, so manufacturers may refuse to reimburse a store that accepts a sold coupon. But there's another reason: coupons purchased online are considered counterfeit.

Websites and auction sites sell coupons clipped from the newspaper and even printouts of Internet coupons, but the number of free-product coupons available online is surprisingly large. Even if these coupons were genuine, they'd be void. In fact, most of them are counterfeit.

The Coupon Information Corp., an industry watchdog group, is a not-for-profit association comprised of consumer product manufacturers who fight coupon fraud. The group maintains a list of fraudulent and counterfeit coupons at its website: www.coupon informationcenter.com.

I compared some of the coupons on the Coupon Information Corp.'s list of current counterfeits to the coupons for sale at several websites. What I found might surprise you: Many coupons on the group's fraud list are widely available for sale online. While the Coupon Information Corp. works diligently to keep people up-to-date on counterfeits in circulation, it doesn't stop sellers from continuing business as usual.

Shoppers might assume the coupons they purchase online are legitimate. They might conclude, these don't look real so I can't use them. More likely, though, they'll think, I paid for these, and I am going to use them. These shoppers run the risk of arrest and prosecution for counterfeiting.

Why don't manufacturers take action?

Some coupons do not contain a "Void if sold" clause. Technically, if the coupon does not state that it can't be sold or auctioned, there are no penalties for doing so. Ebay.com, arguably the most popular online auction site, has a special policy for coupon resale that states that sellers should review coupon terms to make sure the coupon can be sold. But Ebay goes on to say that it does not monitor or remove coupon listings based on third-party contracts. The site's terms also warn that stores may not accept coupons that they believe have been sold, placing the responsibility back on the sellers.

In 2011, a Fox News report about counterfeit coupons on Ebay included an interview with a shopper who purchased counterfeits from the site. After learning that her coupons were counterfeit, the shopper filed a claim with Ebay and Paypal, the online money transfer service she used to pay for the coupons. Ebay and Paypal did not decide in her favor and let the seller keep the money, stating, "The listing accurately described the item you received." As far as they were concerned, she paid for a piece of paper and she got one.