We have learned during the last few days that Tesco has decided that from June 2010 they will no longer return manufacturer coupons they accept in part payment on your behalf. We understand that Tesco will continue to deduct the value of your coupons from your trading account but will then simply pass on the information as they do now but not the physical coupons, these will simply be destroyed.

This decision has been taken by Tesco for what we believe to be cost reduction reasons. There has been no prior consultation with suppliers, stakeholders or any of the representative bodies such as ISBA or the ISP. With so little time left before implementation we assume you will be contacted quite soon by Tesco.

As the coupon agent working on behalf of many manufacturers we have immediately brought this to the attention of the ISP, ISBA and the FDF and will do everything we can to help repeal this decision, if at all possible. We are concerned about this decision on a number of levels:

• How do we know coupons are securely destroyed and not re-circulated?
• As far as we know there will be no exceptions, so any coupon you have circulated with PIN data on it will be lost
• Uniquely personalised internet coupons that can be validated will be impossible to track
• ‘Free’ coupons can be claimed at any price without reconciliation

Ultimately if this is forced through we will need to discuss the impact and to consider what we can do to help our clients deal with any matters arising and future couponing activity to ensure they are not disadvantaged by this arbitrary move.

We question why you would continue to pay the same rate of handling allowance when the service has been removed?

This change would be difficult to accept in any circumstance but given the backdrop of last year’s misredemption issues with Tesco and the continued shortfall between the values claimed through the direct recovery process and those verified by ourselves, we believe this initiative:

• Reduces your marketing options
• Leaves you open to fraud (by customers/staff) within Tesco
• Loses your right to verify and challenge
• Will leave you open for redemptions against products Tesco do not stock, without recourse

We have brought this news to you as soon as we were confident about Tesco’s intentions. We will be actively involved at an industry level and would be happy to take forward any specific issues you may have. If you would like to be involved in the ISP’s consultation please don’t hesitate to contact us.

Please contact mrmsales@mrm.co.uk to register your interest and keep checking back on www.mrm.co.uk for more information.