The MH Flash and Gain loyalty program has once again come under attack and scrutiny by the Consumer Council.
Council chief executive Premila Kumar (pictured) labeled the program a moneymaking venture and raised particular concern about MH’s decision to double the points needed to redeem certain gifts under the program.
“In September this year MH revised its existing gift redemption list, doubling the points required to redeem certain products. In 2009, MH increased the $1 per point earned under the program to $5 per point, making it harder for loyal consumers to accumulate points. Doubling the points has made it difficult for consumers to redeem rewards,” she said.
Gifts offered under the program, she added, could be bought cheaply during ordinary MH sales.
She said it was ironic that the supermarket saw it fit to distribute certain goods free or at very cheap prices to all its customers but expected them to first spend $10 to join the loyalty program and later spend large sums of money to acquire gifts
Carpenters group chief operating officer Freddie Keshwan said they would issue a response soon.
“The council’s investigation revealed MH has taken off expensive and renowned brand gifts from its reward redemption list and substituted them with cheaper products. Our investigation showed some items offered as rewards were not in stock. The council has always maintained that Flash and Gain was a clever and hideous marketing tactic used to make money rather than rewarding its loyal customers,” she said.
She expressed hopes the Commerce Commission would investigate the council’s complaints against the program which was lodged last year.
Carpenters group chief operating officer Freddie Keshwan said they would issue a response soon.