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Class Sues Home Depot for Rebates

MANHATTAN (CN) - Home Depot refused to pay "thousands" of rebates it offered, of up to $1,000 apiece, or shortchanged customers after the administrator of the rebate programs declared bankruptcy, a class action claims in Federal Court.

Named plaintiff Loretta Alkalay says the store has not paid her $1,000 rebate for special order kitchen countertops and major appliances ("the Kraftmaid/Thomasville Rebate Offer").

"The Kraftmaid/Thomasville Rebate Offer was administered on Home Depot's behalf by its agent CPG Marketing Inc. and/or Continental Promotion Group Inc. (collectively, 'CPG')," which have filed for Chapter 11 protection in Tampa, Alkalay says. She adds: "thousands of other persons and entities made qualifying purchases during this period and were entitled to receive rebates under the Rebate Offers. Reportedly, CPG's Chapter 11 bankruptcy plan sought financing from Home Depot to back 68,865 customer checks.

"In connection with the CPG Chapter 11 filing, Home Depot issued a Rebate Check Alert on its Web site advising customer that, inter alia, the CPG bankruptcy 'resulted in thousands of customers at risk of receiving unfunded rebate checks.' The Rebate Check Alert acknowledged Home Depot's responsibility for the rebate payments, stating that 'customers entitled to receive a rebate check for products purchased at The Home Depot stores will be supported by The Home Depot.'"

Despite this promise, Alkalay says, Home Depot gave her a $250 rebate, though it owed her $750.

She is represented by Judith Spanier with Abbey, Spanier & Rodd.

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