Independant Mobile Phone Dealer Association - Want to stop Cashbacks.

alnsv1000s · 16 September 2007 at 9:35AM

Hi All,

The IMPDA which has been set up by 1 guy, has written a letter to all the networks, stating that All Independant Dealers want Cashback Deals to be stopped as of 1st October 2007 and replaced by gifts such as Ipods etc.

http://www.impda.co.uk/index.php?option=com_content&task=view&id=39&Itemid=2

I own an independant retail store, and quite a few of us are not happy with this letter, as we had not been consulted before it was sent. Apparently an email was sent but it didn't get dispatched by the sever.

I occasionally offer realistic cashback incentives, and ensure that i pay out with the minimum of hassle. It may be 6 months free webnwalk or 3 months half price line rental, but i offer an excellent service to my customers and provide the correct phone and package for their needs.

When i offer a cashback incentive, the customer brings their 1st bill showing that 1 payment has been made and a voucher into my shop, I take their debit card and credit their bank account whilst they are standing there. Altenatively i make a bacs payment directl to their mobile phone account if they prefer. Done and dusted.

I have never had a complaint from any of my customers since i started trading which was many years ago, to either myself, Trading Standards, Which, or any of the networks and it works fine. Customers benefit from a better deal and i benefit from a few extra connections and gaining, hopefully a long term customer.

The IMPDA wants all this to stop. Maybe it is as the owner of the IMPDA has an online based dealership and does not or cannot want to compete with the likes of coolnewmobile, e2save, dialaphone etc. They deny this and say it is for the good of the industry.

I still want cashbacks to be available, as i think that people would rather save a little money, but i want it regulated properly by the networks.

As of next month, if we offer a cashback incentive though THREE, it has to be approved by them in advance. If we do not, then our dealership will be terminated.

Orange are bringing in that a cashback offer cannot be made where the amount is more than the net profit of the deal.

We must stop the cowboys out there, but i think that the IMPDA's request is too drastic.

What are your thoughts please:-

mobilejunkie · 16 September 2007 at 9:58AM

I am totally against any "ban" and am not entirely supportive of even the move by Orange. I understand the reasoning but some of us are happy enough as things are unless there is fraudulent activity. Of course, what is fraud is a question in itself and all the main on-line dealers are dishonest at the very least. Unfortunately, so are many FTSE 100 companies (which now numbers cpw as one of the 100 after a recent review, I believe) and they aren't often held to account. In my experience in other areas, over and inept regulation from above is usually there to suit the industry and not the customers anyway. Further, it is often implemented by people who aren't intelligent and experienced enough to have much of a clue about what they are doing or the unintended effects it may have.

Driving these dealers out of existence or making the deals (which CAN be achievable) extinct is in no-one's interests. Protecting people from their own carelessness is not required; protecting them from their own gullability should only go so far.

alnsv1000s · 16 September 2007 at 5:13PM

Thanks for your reply Mobilejunkie.

This may affect all of you, as if cashback promotions are forced to be withdrawn, many companies may dissapear, as the connections will not be coming in.

Anyone else have any thoughts?

Old_Gold · 16 September 2007 at 7:24PM

It is interesting that you post on a forum where most of us would not consider a deal where you give three months half price as any incentive at all to buy. I do not deny that you might give very good service but in an industry which charges extortionate amounts to make a phone call there are plenty of us who only will take a deal and use the phones by making our own deal. That would be by a decent cashback or a good deal from the company itself.
Why would someone take a deal from a dealer charging £35 per month for an average deal when the more realistic figure is £10/15 as given in retention deals.
It is the industry that needs looking at and as Mobilejunkie says it is run by people who have their own agenda not the interests of the consumer as their priority.

David_beach · 16 September 2007 at 8:44PM

Hi all

Just looked at the IMPDA website and there are 46 registered users!

I can't honestly see how the IMPDA will be taken seriously by the networks when they are culling dealers in the hundreds as and when they like.

David

diggerunited · 27 January 2008 at 8:50AM

I have come accross this from the dealers assocciation, they are asking for our help in fighting cashback. looks like they have already had a meeting with Ofcom, and having a go with MP's next week as well. As their are many hundreds owed on the forum, it might help to get those in government moving to sort this. At this stage with sites still doing cashback, they need to sort this now. :money: This is what they put...

We the IMPDA (Independent Mobile Phone Dealers Association) are currently engaged in actively holding discussions with regulators and UK policy makers with regards to cashback, the treatment of dealers by networks which led to this and to force change to protect the consumer. We have already had meetings with Ofcom and meetings with MP;s is imminent.

However we are asking all those who have victims of mis-sold cashback deals to help us push for change. If you have been a victim, please contact your MP and ask them to sign the Early Day Motion No 696 in support of the IMPDA and asking for change. In addition please ask your MP to support MP Roger Godsiff in asking for an adjournment debate so that the cashback issue can be debated on the floor of the House of Commons which may lead to legislation.

The IMPDA is pushing for urgent change but we also need you the publics support so that consumers will not be put to this situation again. We are being successful but your support is vital if change is to come on this subject. Please act now. If you would like to make a donation to help us then please go to www.impda.co.uk where you can make a donation to the fighting fund.

alnsv1000s · 27 January 2008 at 12:15PM

Their are now 19 MPs supporting the Early Day Motion and we need you to help get more on board.

The IMPDA will be at parliament this week with proposals to ensure that compliance is brought into the Industry across the board.

As mentioned in the Cashback Petition sticky thread the IMPDA just want to make offers fairer for all and not an outright ban.

In the early days, I was dead against them as they wanted an outright ban, but after a few months of wrangling and slanging matches we are in agreement as to the way forward.

We have received cooperation from Ofcom and MPs and would greatfully request cooperation from Consumers and the Networks in attempting to make this product that most people have nowadays a pleasant and hassle free purchase.

andrewk_2 · 29 January 2008 at 7:50PM

If you want to make customers' purchases more pleasant, abolishing cashback deals in favour of free gifts is just ridiculous. The mobile networks should abolish the ludicrous amounts of commission that they give to retailers that lead to this charade, and drop the line rental accordingly. Hell, introduce the option to pay off the cost of a new handset over the term of the contract if you like, so that people can get their instant gratification of a shiny new phone without having to pay for it up front, but the most important thing is making the cost of your phone and the minutes absolutely transparent.

Of course, the networks would never do it - people don't know how much it really costs to make calls!

Independant Mobile Phone Dealer Association - Want to stop Cashbacks.

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