Conned by Continental Tyres

This is related to post Purchase 2 Continental Tyres Min $190 and Get Access to ContiRewards App Free Pizzas + More

Original offer
* Purchase 2 conti tyres and get access to conti rewards app which includes:
* 1 free dominos pizza per day, 2 for 1 movie vouchers as well as 2 for 1 other random crap for 12 months.

However the free dominos pizza offer was replaced by 20% off EatNow offer with varies restrictions later September.

The domino pizza was the most attractive offer that drew many customers to purchase the tyres including myself. No question that Continental are good tyres. The question is whether Continental has the right to alter the T&C in their own favour? Using the bait to lure customer and take it away afterwards. Sounds like false advertisement to me.

Original T&C:
http://files.ozbargain.com.au/upload/83594/25588/conti-rewar...

Current T&C (01-10-2014):
http://files.ozbargain.com.au/upload/83594/25587/conti-rewar...

T&C link:
http://www.continentalpromotions.com.au/pdfs/Conti-RewardsT&...

and in the T&C there is this clause:

7 . TLC reserves the right to withdraw, change or substitute the offers with another offer of equal or greater value.

Me and a few fellow OzBargainers are ready to take this to ACCC and need some advice and support. If you are interested in the progress, feel free to vote and reply. Better still if there are more names in the complaint to ACCC, there may be more chances.

Thanks to @nexus4, these clauses might be relevant to the issue:
From the Australian Consumer Law:
http://www.austlii.edu.au/au/legis/cth/consol_act/caca201026...

23 Unfair terms of consumer contracts

(1) A term of a consumer contract is void if:
(a) the term is unfair; and
(b) the contract is a standard form contract.

24 Meaning of unfair

(1) A term of a consumer contract is unfair if:
(a) it would cause a significant imbalance in the parties' rights and obligations arising under the contract; and
(b) it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term; and
(c) it would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.

25 Examples of unfair terms

(d) a term that permits, or has the effect of permitting, one party (but not another party) to vary the terms of the contract;

Poll Options

  • 6
    I purchased Conti tyres during the promotion, I support the action to take it to ACCC;
  • 0
    I purchased Conti tyres during the promotion, I don't care;
  • 72
    Passerby, I support taking Continental Tyres to ACCC;
  • 6
    Passerby, Continental Tyres did nothing wrong;

Related Stores

Continental Types
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Comments

  • -2 votes

    I don't think Conti have done anything wrong here. Your case would most likely either be with the marketing company TLC, or with Dominos depending on who actually withdrew the offer!

  • +1 vote

    Dodgy, but happens. If it is in the T&C that they can change without notice and they usually have that than chances are the ACCC won't be much help. Unless they're flagrantly breaking the law.

    • +2 votes

      Unfortunate… but yep!
      7 . TLC reserves the right to withdraw, change or substitute the offers with another offer of equal or greater value.

      •  

        The argument is the legitimacy of such clauses, according to the ACL quoted above.

        •  

          Hopefully the Chaser Boys (or the 3 that are on there) will do a case study of this on another show. Was the Checkout canned? Maybe they'll mix it in their new show. Otherwise another great ABC show, The Gruen Transfer might do it. 'How Not To Run a Promo'

  •  

    this thread should be closed and continued in other thread. Someone wants blood here.

    •  

      Blood?
      Pizza?
      Blood-pizza? Is that a thing?!

  •  

    Correct me if Im wrong or missed something, but in both of the T&C linked (original + new), neither specifically mentions anything about Dominoes or Pizza.

    II.Food offers- customer to choose a venue on a dedicated website/app; claim a free, 2 for 1, or meal discount
    eVoucher and print copy and present or show via mobile at the chosen venue to claim specified meal option

    Did the original promotion advertise Free Dominoes pizza specifically? If not, the purpose of the promo was to offer you access to the Conti 365 rewards. As long as the Conti 365 rewards still contain offers for:

    II.Free, 2 for 1, and discounted dining offers
    III.2 for 1 Days Out/Free Days Out
    IV.Free Sports Lesson/Session
    V.2 for 1 Music Downloads/Limited Free Music Downloads through www.theinsong.com

    … then they have the right to change the venues.

    In addition, would you have known about the specific offers in the rewards offer (such as free Dominoes pizza) if it wasn't posted on OzBargain?

    • -1 vote

      At the very bottom of the first T&C dated 20140920, there is "Dominos"; Someone also saw it on Continental Tyres facebook page; There were people redeemed these pizzas as well.

      •  

        what is in question here is whether or not the offer that exchanged the free dominos pizza is classified as equal value.
        In my opinion free and 20% off are significantly different and is not equal in value.

  •  

    It's a fantastic deal in theory to get a free feed everyday, but when it's crappy pizza, you wouldn't eat it everyday and you probably couldn't last more than 20 days or so like Supersize Me and just get all sorts of health problems from it. Even if you didn't it'd be quite a challenge just on boredom alone, even if you liked all the toppings they're essentially meat, cheese and some vegies with sauce on some flour dough.

    Whoever at Conti, TLC or Dominoes thought of this promo must have been chewed out and or fired for it.

    Say a thousand people took up the offer and did it once a week on average and say the cost of pizza is anywhere from $1.50 up to $4, within a a few weeks it would eat away at the profit on that promo. No wonder they pulled the plug on it. Say costs of $200,000 but only getting roughly $20,000-$40,000 profit on tyres. Most people would have bought 4 tyres thought right? So could be over $80k, that's around 5 months of Dominos to 'eat' away at it.

    Obviously nitpicks…the maths is more complex than that but 'back of envelope' here.

    Sometimes a deal is too good to be true, and buying

  •  

    You don’t expect to make money from a single marketing campaign. Marketing is to spending money and sales makes money. Otherwise there won’t be any freebies or $0.01 deals floating here. But agree this marketing campaign from Continental Tyres is a complete failure.

    There are about 700+ downloads (Google + Apple store) of the reward app which is the portal to all the rewards, means only about 700 customers took the offer. It is only 14% of the total 5000 quota they allocated.

    If there was no such promotion at all, I would consider Continentals when I need new tyres in future because they are good tyres.
    If they continue with the pizza offer I probably would be bored after first dozen pizzas and Continentals have a loyal customer.
    But now what they did (promise, get the money, take the promise back) is far more damaging than doing nothing. Put ACCC aside, fool me once, shame on you, I would never let them fool me twice.

    •  

      You keep saying Continental, but it's ultimately not controlled by them. They would've, for a fee, signed with the marketing company (TLC) that is making the deals! It's the marketing company (TLC) that has penned a deal with Dominos. The problem here for you is that you do not know the content of the contract signed between those two companies or who is responsible for the withdrawal.
      In law it is also acceptable that someone can make a mistake in the wording/expression and is able to withdraw or amend the offer at issue! On any price list I ever released it would always contain the text E&OE (Errors and Omissions Excepted) for this reason.

    •  

      Yes marketing is an investment, or should be seen as long-term and not a cost in short term.

      But this 'we'll make up for it in volume later' mentality in losing money is just plain silly. No wonder they've reneged on the deal, it's losing them money and fast.

      Anyhow, fun fact: TLC also did the 'Free Movie Ticket' with Kogan $15 gift voucher, I think. It rings a bell.

  •  

    I still have the pizza come up on mine, but it returns an error, I however don't see the 20% off eatnow!!!

  • +1 vote

    The question I think is, did you buy tyres or did you get buy a years worth of pizza?

    Now, if you bought the later, I would argue you are being vexatious, because it doesn't sound reasonable to me you would go to a tyre company to buy ur pizza.

    But good luck with the ACCC approach, and keep us informed.

    I might add I was in the market for new tyres, and was really tempted for this deal when I saw it on ozbargain, but I didn't genuinely believe it would last, because it simply made no commercial sense for continental to honour it. Mistakes by companies happen, they don't expect people to try to exploit their marketing campaigns, see ezibuy right now. Sometimes, it backfires on them.

    But in this case, it seems like it backfired on ozbargain. I think this is a good lesson, don't be greedy with free lunches, in this case pizza.

    •  

      Surely this company doesn't employ chimps for their marketing.

      Yes if you offer free pizza for 12 months, its going to be used/exploited.

  •  

    Exactly. Buying something you don't need with money you don't have (an old marketing joke) is not a wise thing to do, especially when a free 365 days of Domino's pizza is the deal to get when buying tyres you may not normally buy without the carrot/lure of the free pizza. And it seems too good to be true.

    If you're David and you're about to get something off Goliath at a loss, Goliath will do everything they can to not lose or turn it around so in the end it's lose-lose and not a win-lose deal.

    • +2 votes

      Not lose-lose.
      Most Conti tyres are at (or very near) top of their respective sizes. At the end of the day, you have great tyres and enhanced safety.

  •  

    You agreed with the initial terms of the contract. Thus,

    T&C statement 26. Contiential Tyres or TLC reserve te right to modify, suspend, terminate or cancel the reward program, or individual reward offer, as appropriate.

  •  

    Have you spoken to Continental about this?

    I was so tempted to buy a couple of tyres myself and take up this offer, as I normally buy Domino's once or twice a week. I would feel cheated if they did this bait and switch tactic on me.

  •  

    Any update on the ACCC action?

    •  

      Once again I could tell you that there would be no case for Continental AG to answer to. Consumer laws are not 'only' there to protect the consumer. The OP's own extracts about 'Unfair' are clearly relevant in this case, and 'unfair' towards the consumer!
      In this case, it is 'unfair' to assume that you could spend less than $300 on a pair of tyres in order to gain approx $1800 worth of pizza!