Doctor decries Apple gift card discount 'scam' after failing to understand the terms of th...

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in iPad

An academic with a sideline in TikTok videos about marketing scams claims Apple defrauded her over an iPad discount -- despite her getting precisely the deal she was promised and should have expected.

Five colorful Apple logos with various abstract patterns on a white background.
Apple gift cards



This will shock you, but it's possible that experts on TikTok might not know what they're talking about. That's even when the expert is Dr Mara Einstein, a professor at Queens College, CUNY, who says she's an "ex-TV/ad exec turned marketing critic."

Dr Einstein, who presents seminars on marketing trickery, added a video about Apple to her TikTok channel. As she tells it, she bought an iPad and was stung by the "deceptive marketing" that meant Apple offered her a free $100 gift card but then charged her for it.

"If this did happen to you, do contact the FTC and let's make sure Apple isn't doing this to anybody else," she says in the video, with a completely straight face. So far the video has had 19,000 views and seemingly no comments pointing out that she should have read her credit card statement before filming it.

That's because if she had read it, Dr Einstein would have seen that the total she paid was precisely the amount she expected. She got her iPad at the educational discount price, and she still has a $100 gift card.

What Apple does is make two charges on a credit card. Dr Einstein will see that the first one is for her iPad -- and that it is $100 less than she was expecting to pay. Then the second charge is $100, which is ascribed to the gift card, which brings the total up to exactly the advertised price.

It could all be clearer, but as any marketing expert ought to be able to tell you, it's done this way for a really specific and necessary reason. If Apple simply billed the full amount for the iPad and gave away the $100 gift card, someone could redeem that card but also return the iPad.

Dr Einstein even says that Apple told her this when she phoned to complain. She also appears to say that she got them to "get rid of that" $100 apparent charge, and seems convinced that this worked.

She's the one who scammed Apple, not the other way around. And, worst yet, she doubled down on her "analysis" of the situation.

So she should really now read her next credit card statement properly, too.

Dr Einstein got her iPad through Apple's educational discount. Apple always offers students and educators a discount, but particularly at Back to School time of the year, includes gift cards as an incentive.



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Comments

  • Reply 1 of 22
    lam92103lam92103 Posts: 144member
    Typical ad execs ¯\_(ツ)_/¯
    entropyswatto_cobra
  • Reply 2 of 22
    People are special. Like the ones who thinks that you could pay cash on an app store or Self checkout that are largely labeled “Credit Card Only”. 
    mike112Strangerswatto_cobra
  • Reply 3 of 22
    larryjwlarryjw Posts: 1,036member
    It is misleading! Scam? 

    I was buying a gift for my daughter and was offered a free gift card. It’s was going to cost me $100. 

    I guess it would be free for my daughter but I’d be paying for it. 
    kfulqinwilliamlondon
  • Reply 4 of 22
    entropysentropys Posts: 4,267member
    It’s clear that academics should never be involved in decision making about money.
    watto_cobra
  • Reply 5 of 22
    I think that this practice by Apple is misleading and not transparent.  It's sleazy marketing.
    williamlondon
  • Reply 6 of 22
    davidwdavidw Posts: 2,103member
    This also happens with ..... buy one, get one free .... deals (here in CA at least). One is charged for the full price of both items and then a 50% discount is applied. The reason why it's done this way is so CA can collect the sales tax (or any other taxes like alcohol, sugar, cigarette, CRV, etc.) on the "free" item.

    Anyone that have done any comparative shopping, knows that ..... buy on get one free ... deals, are a "scam". The "free" one is not actually  "free" in States that charges sales tax (or other taxes) on the item.

    For example ... say that a bottle of wine cost $20 and there's a .... buy one, get one free deal. So it will cost you $20 for the two bottles of wine. But the register rings up $40 for the two bottles and then $20 is deducted for the "free" one. But the sales tax and alcohol tax in based on the $40. BUT if there was a 50% off sale on the same bottle of wine and each bottle of wine is priced at $10, then the register would ring up 2 bottles of wine at $10 each or $20. And any taxes will apply only to $20. (So long as the 50% discount (on each bottle) is accounted, for when entering the price into the register.)

    I'm sure in CA, the politicians will figure out a way (if they haven't already done so) to tax the amount of the discount its residents receives on items that are on sale below MSRP.  As liberal and progressive as CA claims to be, sales tax is the most regressive of all taxes and CA is one of the States with the highest sales tax.







    edited August 22 williamlondonwatto_cobra
  • Reply 7 of 22
    I think the author is off-base. I bought a M4 iPad Pro on the promo and I got $100 off plus &100 off for the gift card. The two line items were

    Education Individual ($ 100.00)
    Special Offer ($ 100.00)

    I also received a discount on the AppleCare+ and the Pencil Pro.
    watto_cobra
  • Reply 8 of 22
    kfulqin said:
    I think that this practice by Apple is misleading and not transparent.  It's sleazy marketing.
    Did you even read the article, or just register to troll?
    williamhmacseekertimpetusDAalsethdavroundaboutnowwatto_cobradanox
  • Reply 9 of 22
    So here's the deal... and this doctor is an idiot.. or just trying to scam Apple.   Former Expert here who dealt with stuff like this about ten thousand times. 

    You buy an iPad Pro, it costs $999.  You're eligible for the education discount, so now the price is $899.  That is a year round deal.  But since the back to school promo is going on, you also get a $100 gift card.

    When you look at your receipt you'll see that you were charged $799 for the iPad, and $100 for the gift card.  The total is $899.  The same as without the gift card, but you do have a $100 gift card to spend.  

    Why does Apple do the transaction this way?

    Simple, customers would take advantage of the deal, then try to return the iPad.  If they weren't charged for the card, and the value of the card wasn't take off the product, you'd still have that gift card.  Now, you try to return the item, if you come in both product and UNUSED gift card, you get your full $899 back.  What if you used part of the gift card?  What if you didn't have it?  Well, now you get your $799 back and you get to keep the gift card- after all you paid for it.

    Going back to the summer 2020, I worked at home doing post order service for Apple, and the back to school deal wasn't a gift card, but AirPods.  I cannot even guess how many people tried to return the product thinking they'd get to keep free AirPods.  No, silly people... you paid for those AirPods, but we'll gladly refund you the reduced price of the product you bought to get them

    It's all pretty simple except I guess for doctors who can't do arithmetic.
    thebutlerdunnitmacguiwilliamhmacseekerbeowulfschmidtdaviOS_Guy80roundaboutnowwatto_cobradanox
  • Reply 10 of 22
    jdwjdw Posts: 1,418member
    What's most amusing is the fact that I've often heard people use "Hey, Einstein!" in a derogatory fashion to insult a person by calling them brilliant when they obviously are not.  And now we have a so-named person who fits that definition perfectly!

    Note the circular logo in the upper right on her Linkedin Page, which shows the hair of Albert Einstein, which seems to be telling the world she has an association with his brilliance:
    https://www.linkedin.com/in/drmaraeinstein/

    It's no wonder people criticize institutions of "higher learning."  You often have a band of PhD-wielding idiots teaching our kids.
    watto_cobra
  • Reply 11 of 22
    omasouomasou Posts: 613member
    If not a scam it is VERY misleading.

    I want a $100 discount on the item I am buying, now, today, nothing else. I don't want or need a $100 gift card on a FUTURE purchase.

    Essentially, it works out to me paying full price for the item and getting a free $100 that I can ONLY spend at Apple. It's similar to Kohl's dollars...an attempt to lure you back to the retailer to spend more money or "lose" your "free" Kohl's cash.

    Well guess what. I just bought what I wanted. I don't need the gift card.

    In the end, I added it to my Apple account and it paid my next couple of Apple One subscription fees.
    edited August 22
  • Reply 12 of 22
    williamhwilliamh Posts: 1,044member
    It is not a scam and it isn't misleading.  The customers are getting exactly what Apple offered.  The only potential for confusion is in looking at the receipt.  Now everyone understands perfectly what you want as anyone would generally prefer that too, but that isn't what Apple offered.

    omasou said:
    If not a scam it is VERY misleading.

    I want a $100 discount on the item I am buying, now, today, nothing else. I don't want or need a $100 gift card on a FUTURE purchase.

    Essentially, it works out to me paying full price for the item and getting a free $100 that I can ONLY spend at Apple. It's similar to Kohl's dollars...an attempt to lure you back to the retailer to spend more money or "lose" your "free" Kohl's cash.

    Well guess what. I just bought what I wanted. I don't need the gift card.

    In the end, I added it to my Apple account and it paid my next couple of Apple One subscription fees.

    davroundaboutnowwatto_cobra
  • Reply 13 of 22
    macguimacgui Posts: 2,419member
    It's only a scam or misleading to people too stupid to do simple arithmetic. It may not be incentive enough when the card buys you only Apple kit. That's a choice

    The article explains it and NYC362 explains it even more clearly. Not a scam, not misleading.

    Here's the offer costing $XXX. You walk out paying $XXX. Not $ABC, not $XYZ, not $ZZT, but $XXX. The exact amount you expected to pay when making the order. Same-same.  Scam? Misleading? Idiot.

    I doubt very much that the Einstein got Apple to "get rid of that" $100. I don't see them giving away $100 in a circumstance like this. More likely a claim to impress her TikTokers.
    davxyzzy01watto_cobra
  • Reply 14 of 22
    citpekscitpeks Posts: 251member
    omasou said:
    If not a scam it is VERY misleading.

    I want a $100 discount on the item I am buying, now, today, nothing else. I don't want or need a $100 gift card on a FUTURE purchase.

    Essentially, it works out to me paying full price for the item and getting a free $100 that I can ONLY spend at Apple. It's similar to Kohl's dollars...an attempt to lure you back to the retailer to spend more money or "lose" your "free" Kohl's cash.

    Well guess what. I just bought what I wanted. I don't need the gift card.

    In the end, I added it to my Apple account and it paid my next couple of Apple One subscription fees.

    I'm not a fan of "captive value" promotions, like those that involve gift cards, either, and tend to avoid them, but Apple says up front that they're giving you a gift card, not a discount.

    Buy Mac or iPad with education savings. And now through 9/30, get a gift card up to $150, 20% off AppleCare+, and more.  Only at the Apple Store.
    It doesn't say "$100 off," "(additional) $100 discount on Macs and iPads" or anything of that nature.  It says buyers will enjoy the usual EDU discount, and get a gift card on top of that.  As the story said, in the past it was a pair of AirPods.  A bonus item, not a discount.  If it were me, I'd have specified "Apple Gift Card" to further discourage any potential misunderstanding, but it still works as worded.

    That said, as I already stated, I'm no fan of gift cards, and what was sleazy, before some state regulators clamped down on the practice, were the vampire maintenance fees and expiration dates issuers obscured in the fine print of their terms, which drained their value unbeknownst to the card holders.  States have also made it enforceable to redeem values for cash once they fall below a certain balance threshold.

    Some loopholes still exist where Federal rules take precedence, but prudent card holders should redeem them, or transfer their value to another form without haste.  For Amazon customers, redeeming gift cards into Amazon gift balances is an easy way to get "rid" of them, and those balances don't expire, at least in the U.S.

    --

    The internet, and social media in particular, has made the ease and efficiency of communication better than ever before…even if it's to illustrate how dumb you are.

    Apple spells out exactly how the promo works in the fine print, and anyone who believes that the terms haven't been signed off by the legal department might want to buy the Brooklyn Bridge instead.
    Available for Qualified Purchasers only. Qualified Purchasers receive an Apple Gift Card when they purchase an Eligible Product at a Qualifying Location through September 30, 2024. Gift card values may vary by Eligible Product. Only one Apple Gift Card per Eligible Product per Qualified Purchaser. Offer subject to availability. While supplies last. Qualified Purchasers shall receive a discount equal to the value of the Apple Gift Card off the price of the Eligible Product, but will be charged for all items in their cart, including the Apple Gift Card.
    Book smart is not street smart.  Even for those who have titles attached before, or after, their names.  Dr. Einstein might as well be teaching at the University of American Samoa, alma mater of fine graduates like James McGill.

    Unfortunately, such measures are necessarily for companies to protect themselves.  Professional scammers, and regular customers game the promotions or store policies, and everyone loses.  Buy electronics at Costco, and find that their "lifetime" satisfaction policy doesn't apply, only 90-days?  Or their car battery warranties, which have eliminated free-replacement terms in favor of prorated terms?  Thank the members who took advantage of their generous policies and gamed their system.
    davmacguiwatto_cobra
  • Reply 15 of 22
    Just pay the internet a visit and search ‘girl math’. 
    williamlondonwatto_cobra
  • Reply 16 of 22
    DAalsethDAalseth Posts: 2,974member
    I think that there’s a point many people are not catching here. Why Apple handles the transaction like this. 

    They process the free card this way because there are enough AH that tried to game the system that they have to. This isn’t Apple being deceptive, it’s purely self defence. I remember a couple of decades ago Microsoft had a similar promotion, Buy an XBox and get a gift card, only they processed it the way the Prof, and some on here want them to. Stores were swamped by people buying the XBox, immediately returning it, and walking out with free money. 

    Who is to blame for this? We just need to look in the mirror. 
    williamlondonwatto_cobra
  • Reply 17 of 22
    jimh2jimh2 Posts: 656member
    This lady is just another self-consumed person using fake outrage using it for views. What concerns me is if she really is confused about how the deal works then she should not be teaching anyone anything. If she did shakedown Apple for a $100 refund then shame on Apple for allowing it and shame on her for committing fraud.
    williamlondondavidlewis54watto_cobra
  • Reply 18 of 22
    macguimacgui Posts: 2,419member
    DAalseth said:
    I think that there’s a point many people are not catching here. Why Apple handles the transaction like this.  
    It's been made multiple times now. Anybody not getting it is no smarter than Dr. Einstein.
    watto_cobra
  • Reply 19 of 22
    Apple has been doing this for years over Black Friday weekend depending on the product you buy you can receive a $25 $50 or $100 gift card. Essentially you are buying a device at a discounted price along with a gift card. Basically your paying  the full price for the device and receiving a gift card. as it was explained to me, the reason they do it this way is for accounting purposes.
    watto_cobra
  • Reply 20 of 22
    p-dogp-dog Posts: 136member
    Yeah, the only people who would be confused by this are those who sincerely believe that something priced $799 costs approximately $700 instead of it actually being $800.
    edited August 23 davidlewis54watto_cobra
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