Counterfeit Coupons Issues, Voluntary Best Practices, Discussion

• One of the industry’s most significant challenges– Expensive for all parties– Challenging to predict– Undermines the integrity of the industry– Simple solutions hard to come by– Many “glitches” are self-imposed

CIC’s Strategic Vision• Multiple Solutions to a complex challenge

– Physical Security– Early Detection– POS Security– Illicit Coupon Sales – Strategic Alliances with

• Law Enforcement• JICC• SOCAP

Physical Security of the Coupon• Internet Print-at-Home Coupons

– Voluntary Best Practices• No Free Product Coupons• No PDFs or other image of the coupons• Personalization• Understanding of consumer experience on each browser

• Consumer Response Coupons– Holograms– Design Changes/Standardization– Constant Monitoring of Redemption vs. Circulation– Personalization

Early Detection• Technical methods• Internet activities• Retailer education & awareness• Monthly vs. less frequent data review

POS Security• CIC Early Warning System

– Program Details• Limits set before alerts based on number redeemed and where

– Limitations• Not in every retailer• POS hardware limitations• Sheer volume of counterfeits

– Show the growth in PSA’s

Illicit Coupon Sales• Education• Significant markets

– Auction sites– Amazon– Facebook– Craig’s List– Darknet– Other

Law Enforcement• Limited Resources

– Federal– State– Local