Bogus cell phone coupons baffle retailers
SEATTLE -- Clipping coupons is so ancient history. Printing coupons from the Internet is old news. Why not use your cell phone as the coupon?
Cellfire, a San Jose, Calif., tech company says their service can do just that and it's free. To start, you just need a cell phone that has access to the Internet. Then simply register your number on Cellfire's Web site to begin using the service.
iPhone users can download a free application from Apple's App Store that makes the electronic coupon clipping even easier. Once registered, Cellfire works in two different ways: You can download manufacturer's coupons to a grocery store's loyalty card via your phone or Cellfire's website and then those discounts are taken automatically at checkout. No paper coupons needed.
But it was Cellfire's other option that intrigued the KOMO 4 Problem Solvers. After selecting your favorite zip code, Cellfire displays a list of retailers that "should" accept an electronic coupon.
Once a user picks a retailer, a coupon code is displayed with the works "show this code to the cashier." A user gets two views roughly every three weeks.
It's new technology that could really eliminate the need to clip and haul coupons around. We decided to test it out.
We selected eight retailers at random in the 98109 zip code, near the Seattle Center. We filmed each encounter with a hidden camera. We showed the cashier the coupon code on our iPhone and to our surprise, all eight retailers did not accept the Cellfire coupon. Nobody recognized the code as a valid, nor had they ever heard of the Cellfire service.
"I've never seen this before"
So we contacted either the manager or the owner of the places we visited and told them what we had done. In many cases, we had to show them how the Cellfire service worked and how we obtained the coupon codes on our iPhone. Most coupons were two-for-one offers and in some cases there was a certain dollar limit.
From national chain stores like Quiznos, to local restaurants such as the Bamboo Bar & Grill, Café Ladro, La Palma, Gorditos and Candles Café and attractions like the Pacific Science Center and the Seattle Children's Theatre, they all told us Cellfire was never authorized to run a coupon on their behalf.
"I've never seen this before," says Crystal Clarity, Director of Marketing for the Pacific Science Center. She says they are very careful about their marketing, branding and logo use.
"The Cellfire coupon offers none of that," says Clarity. "We would never have approved such a coupon without our branding and this code is something we don't use."
At the Bamboo Bar and Grill on Alki Beach, Cellfire was offering a two-for-one entrée. It's something manager Dawn Uza never authorized.
"It just seems really scandalous. It just doesn't sit well with the management team here," says Uza.
"I'm angry about it!" says Jim Jewell, Public Relations Manager for the Seattle Children's Theatre. Not only did Jewell say the coupon is unauthorized, but he says the coupon goes way beyond any offer they would ever make.
Connection found
Cellfire coupons can be viewed twice roughly every three weeks, meaning a user could receive the two-for-one theater ticket offer eight times every six months. That's eight very expensive tickets for the non-profit theater.
"It's a discount far great than what we would offer, especially to someone we don't have a connection with," says Jewell.
But it was at the Candles Café in North Seattle where its owner made a possible connection.
"It was the same offer I set up with The Entertainment Book," says Candle's owner Erin Flynn. She also did not authorize Cellfire to run a coupon for her small restaurant.
The Entertainment Book is one of the most popular coupon books in the country. Headquartered in Troy, Mich., the company produces over 150 localized editions. Each book is packed with hundreds of coupons and the books are not free. On average, they run between $15 and $25.
The book is often used as a fundraiser for schools and non-profit organizations.
The only coupon Flynn has ever authorized for her business was for the Seattle edition of the Entertainment Book.
"Only Entertainment Book has this, and it's identical phrasing," says Flynn as she looks at the Cellfire coupon for her business.
It was a common theme with nearly every store we had visited. Almost all ran coupons in the Entertainment Book and the wording of the Cellfire coupon was nearly the same.
Entertainment Publications had not heard of Cellfire's cell phone coupons until we called them.
"We appreciate you bringing this matter to our attention," says Ryan Torresan, Marketing Manager for Entertainment Publications. "We are now investigating the issue. Entertainment and Cellfire do not have a business relationship."
So where did Cellfire get its coupons?
Cellfire turned down our repeated requests for an interview, but in response to a series of written e-mail questions, Cellfire's CEO Brent Dusing said: "Coupons on Cellfire are provided by the retailers."
But after we pressed Cellfire on what we discovered, Dusing later wrote, "Cellfire worked with a partner on this and the company (Cellfire) is no longer engaged with them." Cellfire refused to disclose the identity of that third-party company.
Cellfire has now pulled what it called "questionable" coupons from its service. It's still offering manufacturer's coupons for a major grocery retail chain and some "show the cashier"-type coupons.
Cellfire, a San Jose, Calif., tech company says their service can do just that and it's free. To start, you just need a cell phone that has access to the Internet. Then simply register your number on Cellfire's Web site to begin using the service.
iPhone users can download a free application from Apple's App Store that makes the electronic coupon clipping even easier. Once registered, Cellfire works in two different ways: You can download manufacturer's coupons to a grocery store's loyalty card via your phone or Cellfire's website and then those discounts are taken automatically at checkout. No paper coupons needed.
But it was Cellfire's other option that intrigued the KOMO 4 Problem Solvers. After selecting your favorite zip code, Cellfire displays a list of retailers that "should" accept an electronic coupon.
Once a user picks a retailer, a coupon code is displayed with the works "show this code to the cashier." A user gets two views roughly every three weeks.
It's new technology that could really eliminate the need to clip and haul coupons around. We decided to test it out.
We selected eight retailers at random in the 98109 zip code, near the Seattle Center. We filmed each encounter with a hidden camera. We showed the cashier the coupon code on our iPhone and to our surprise, all eight retailers did not accept the Cellfire coupon. Nobody recognized the code as a valid, nor had they ever heard of the Cellfire service.
"I've never seen this before"
So we contacted either the manager or the owner of the places we visited and told them what we had done. In many cases, we had to show them how the Cellfire service worked and how we obtained the coupon codes on our iPhone. Most coupons were two-for-one offers and in some cases there was a certain dollar limit.
From national chain stores like Quiznos, to local restaurants such as the Bamboo Bar & Grill, Café Ladro, La Palma, Gorditos and Candles Café and attractions like the Pacific Science Center and the Seattle Children's Theatre, they all told us Cellfire was never authorized to run a coupon on their behalf.
"I've never seen this before," says Crystal Clarity, Director of Marketing for the Pacific Science Center. She says they are very careful about their marketing, branding and logo use.
"The Cellfire coupon offers none of that," says Clarity. "We would never have approved such a coupon without our branding and this code is something we don't use."
At the Bamboo Bar and Grill on Alki Beach, Cellfire was offering a two-for-one entrée. It's something manager Dawn Uza never authorized.
"It just seems really scandalous. It just doesn't sit well with the management team here," says Uza.
"I'm angry about it!" says Jim Jewell, Public Relations Manager for the Seattle Children's Theatre. Not only did Jewell say the coupon is unauthorized, but he says the coupon goes way beyond any offer they would ever make.
Connection found
Cellfire coupons can be viewed twice roughly every three weeks, meaning a user could receive the two-for-one theater ticket offer eight times every six months. That's eight very expensive tickets for the non-profit theater.
"It's a discount far great than what we would offer, especially to someone we don't have a connection with," says Jewell.
But it was at the Candles Café in North Seattle where its owner made a possible connection.
"It was the same offer I set up with The Entertainment Book," says Candle's owner Erin Flynn. She also did not authorize Cellfire to run a coupon for her small restaurant.
The Entertainment Book is one of the most popular coupon books in the country. Headquartered in Troy, Mich., the company produces over 150 localized editions. Each book is packed with hundreds of coupons and the books are not free. On average, they run between $15 and $25.
The book is often used as a fundraiser for schools and non-profit organizations.
The only coupon Flynn has ever authorized for her business was for the Seattle edition of the Entertainment Book.
"Only Entertainment Book has this, and it's identical phrasing," says Flynn as she looks at the Cellfire coupon for her business.
It was a common theme with nearly every store we had visited. Almost all ran coupons in the Entertainment Book and the wording of the Cellfire coupon was nearly the same.
Entertainment Publications had not heard of Cellfire's cell phone coupons until we called them.
"We appreciate you bringing this matter to our attention," says Ryan Torresan, Marketing Manager for Entertainment Publications. "We are now investigating the issue. Entertainment and Cellfire do not have a business relationship."
So where did Cellfire get its coupons?
Cellfire turned down our repeated requests for an interview, but in response to a series of written e-mail questions, Cellfire's CEO Brent Dusing said: "Coupons on Cellfire are provided by the retailers."
But after we pressed Cellfire on what we discovered, Dusing later wrote, "Cellfire worked with a partner on this and the company (Cellfire) is no longer engaged with them." Cellfire refused to disclose the identity of that third-party company.
Cellfire has now pulled what it called "questionable" coupons from its service. It's still offering manufacturer's coupons for a major grocery retail chain and some "show the cashier"-type coupons.