Microsoft defends Bing Cashback program amid revelations of cheating
Microsoft’s Bing Cashback scheme, which offers users a discount on items bought online as a result of using the search engine, apparently isn’t without its problems. Not only are there certain methods available to cheat the system, methods which Microsoft allegedly tried to stop from going public, but certain retailers are gaming the system resulting in “negative cashback” being offered.
The Shopping section of Bing was a big hit when the Microsoft search engine launched earlier this year. A big part of this success, which saw the site grow massively between June and August, was down to the cashback offer Microsoft had installed last year. This essentially offers consumers a rebate on goods purchased through Bing.
However, it appears the cashback scheme isn’t without its problems.
A couple of weeks ago, Samir Meghani, co-founder of price-comparison search engine Bountii, posted a few tips on how to game the Bing cashback scheme. Instead of trying to solve the issues raised, Microsoft sent Meghani a cease and desist ordering him to remove the blog post. Which he duly did rather than face the wrath of Microsoft’s legal team.
However, Meghani hasn’t stopped studying Bing’s cashback scheme and has now found evidence that certain retailers are gaming the system. He claims that some retailers are upping the prices being asked for products when they’re searched for through Bing. So rather than saving money, the buyer ends up paying a higher price even with the cashback factored in than they would have had they visited the site directly.
The Bountii blog post claims:
So, if I go directly to butterflyphoto.com, I pay $699 with 0% cashback. If I use Bing Cashback, I pay $758 with 2% cashback, or $742.84. Using Bing cashback has actually cost me $43.84, giving an effective cashback rate of -6.27%. Yes, negative cashback! Is this legal? False advertising? I don’t know, but it’s pretty sketchy.
These are pretty serious allegations because if true they suggest that consumers would actually be better off not going through Bing at all, at least when dealing with certain online retailers. However, I hardly think Microsoft is the big, bad wolf here and it’s the retailers themselves who are wholly to blame for trying to wheedle extra cash out of unsuspecting buyers’ pockets.
Microsoft has responded to the charges by stating:
With more than 1,000 retailers and 17 million product offers, the Bing cashback program aims to ensure Bing customers get the best available deal on the Web. Within the cashback program, each retailer sets the allocation of products and pricing of those products, which are delivered to Microsoft through a real-time data feed. We have tools that will catch discrepancies, and in this particular case, there was an error in the information delivered to us. When we notice an inconsistency or one is reported to Microsoft, we work with the merchant to correct the issue immediately. Overall, this case is an isolated instance within the larger Bing cashback and we are working with Butterfly Photo to resolve this specific issue as soon as possible.
Microsoft should be doing all it can to prevent this kind of cheating of the system. That much is obvious. But I fail to understand why the company is taking all the flak rather than the online retailers which have been shown to be gaming the system. I’m sure it has nothing to do with the fact that Bountii is, in essence, a competitor to Bing’s shopping comparison elements.
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January 3rd, 2010
MICROSOFT SUCKS!