Serious question about the PCE practice. Any consumer law experts here?

  1. Way back when I was in retail it was always explained to me that it was illegal to offer sale pricing to only a select few consumers. If we had discounted any product in the store, it had to be offered to all who came through the door.

    How does Coach get away with doing this PCE sale?
  2. It's not a public discount, we're not physically discounting bags in the store and saying "hey, you can get this at this price if you're preferred but if you're not you can't have it."

    It's like a reward for being a frequent buyer! I know Neimans last call has special sections only for neiman card holders that the public cannot purchase unless you have the card- which I think is silly.
  3. yeah I get both PCE and Needless Markups promo cards. I guess if its a "frequent buyer" thing as opposed to "sale pricing" thats how they get away with it. semantics.
  4. I think just about every retail store with a store credit card sends out coupons to only card holders, or like when they offer you a discount for signing up for a card. I guess that's kind of the same as PCE. Don't know the legalities, though.
  5. The opportunity to obtain the discount is available to everybody, so it is NOT a discriminatory practice. All that is required is for the consumer to buy from the Coach boutique (or possibly online) and make sure that you are entered into their system; and hence, be considered a 'preferred' (faithful) customer. If you don't buy, then you don't get the opportunity to be invited back.

    Coach SA has also told us repeatedly that if you do get invited to the PCE and do not take advantage of it during that timeframe, then you could potentially lose the privilege the next time around. Purchasing something as little as a charm or keychain could ensure that you get invited back the next time.

    As others have mentioned, most other retailers do the same with cardholders - you get the card, you get add'l discounts/coupons/special sale promos - that the general public do not get.
  6. I don't think this is completely true. I keep getting these PCE cards cause I spend of buttload of $$ with them and I know people who have just purchased a couple of things and have never received a card. I think it helps to get to know the SAs too.