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In a cashback promotion, the consumer receives (part of) the purchase price back from the manufacturer, and as the organizer, you are free to attach conditions to this — provided they are clear and not misleading. Good, transparent promotional terms and conditions are crucial, as unfair trade practices are prohibited throughout the EU. If you also collect personal data, privacy legislation comes into play. Below, you can read which conditions must not be missing and what you need to pay attention to legally.
What is a cashback promotion?
In a cashback promotion, you, as the manufacturer, offer the consumer back (part of) the purchase price, for example to draw extra attention to a product or as a market penetration strategy. You determine yourself how much the consumer receives back and under what conditions. Important: the promotion is organized by the manufacturer, not by the seller. The consumer must therefore prove to the manufacturer that they purchased the product.
Why are good cashback promotion terms and conditions important?
Because the purchase price can vary by store and the manufacturer requires proof of purchase, clearly define in the terms and conditions how the consumer participates. For example, you can ask for:
- to send the proof of purchase before a certain date (by post or email);
- to include a barcode;
- to register the product on the website.
In addition, clear conditions are legally necessary: unfair trade practices — aggressive or misleading practices — are prohibited in all EU countries. You must act fairly towards the consumer and must not mislead them. The best way to comply with this is to organize the promotion so that the consumer knows exactly what to expect.
Which conditions must not be missing?
You must always include a number of points in the cashback promotion terms and conditions:
- the amount of the discount or refund;
- when the cashback is paid out;
- how long the promotion runs;
- how the consumer must provide the proof;
- who is entitled to a refund (only private individuals or also business customers).
Cashback promotions and personal data (GDPR)
Some manufacturers use cashback promotions to collect personal data, for example for statistics or direct marketing. This is permitted, but you must comply with privacy legislation. Specifically, this means, among other things:
- you need a privacy policy ;
- you need free, informed consent for use for marketing;
- A refusal to use data for marketing purposes must not have adverse consequences (the consent must be truly free).
Who bears the burden of proof in a dispute?
The burden of proof lies with the consumer: he must demonstrate that he has complied with the promotional terms and conditions. If he sends a receipt and the manufacturer receives nothing, the consumer must prove that he did send it. Therefore, it is wise to advise the consumer to send documents by registered mail and keep a copy. As a manufacturer, you can recommend this in the terms and conditions.
Frequently Asked Questions
Am I, as a manufacturer, allowed to set conditions for a cashback promotion?
Yes. You are free to include terms and conditions, as long as they are transparent and not misleading, and you act honestly towards the consumer.
Who is responsible for the cashback: the store or the manufacturer?
The manufacturer organizes the promotion. The consumer must demonstrate to the manufacturer that he has purchased the product and meets the conditions.
Do I need a privacy policy for a cashback promotion?
If you collect or use personal data (for example, for marketing), then yes. In that case, you need a privacy policy and free consent.
What if the consumer says they sent the proof, but I received nothing?
The burden of proof lies with the consumer. He must demonstrate that he has met the conditions, which includes proving that he has sent the evidence.
Have cashback promotion terms and conditions drawn up?
Do you want to organize a cashback promotion without legal risks? Then have sound terms and conditions and, if necessary, a privacy policy drafted. This way, you avoid disputes with consumers and stay within the rules regarding unfair trade practices and privacy.
Our commercial law and privacy specialists handle this for you. Schedule a no-obligation intake consultation .
