How a caveat cuts your Kohl’s Cash savings
APPLETON, Wis. — Kohl’s reputation for saving customers money through double-digit discounts and a popular rewards program recently took a hit in the household of Al Prokash.
After shopping at one of company’s stores in Green Bay, Wis., Prokash and his family learned how a caveat in Kohl’s practices at the sales register effectively reduces the potential savings that customers can stack up.
Under company policy, cashiers apply “Kohl’s Cash” earned through a rewards program before any store or coupon percent-off discounts. If this practice were flipped, customers would be able to reap bigger savings.
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Prokash, 63, said he didn’t know about that practice until his family bought four shirts in September using $5 in Kohl’s Cash and a 30% discount. They expected to save nearly $17 on the total sale price but the amount came out to $15.49.
It wasn’t a huge drop, Prokash acknowledged. But it didn’t sit right with him that other customers might be unaware of Kohl's practices. He worried they were getting short-changed and filed a complaint with the Better Business Bureau that remains pending.
“Most consumers wouldn’t notice this since the general public avoids anything to do with math, but being a math major it jumped out at me,” he said.
Prokash then contacted the USA TODAY NETWORK-Wisconsin Investigative Team after seeing a recent consumer-focused article we published about Dish Network’s taxing practices. He shared a copy of his Kohl’s receipt for the shirts his family bought in Green Bay.
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It’s not the first time the company has faced scrutiny over Kohl's Cash. Three years ago, an Ohio woman sued the Wisconsin-based department store chain over "$14 in savings she did not receive," arguing Kohl's didn’t properly disclose how rebates and discounts are applied to purchases at sales counters. The case remains pending, according to online court records.
Kohl's also settled a case last year brought by four California prosecutors over the company's pricing and marketing practices. While acknowledging no wrongdoing, Kohl's agreed to pay nearly $1 million for consumer protection activities and provide customers with clearer information about combining Kohl’s Cash with percent-off discounts in its advertisements and at store counters.
We reached out to Kohl’s representatives about Prokash's complaint. The company noted that its policies are disclosed on its website. We also found disclosures stated in bold on Kohl’s Cash coupons and a recent flier for holiday shoppers.
Based in Menominee Falls, Kohl’s operates more than 1,100 department stores nationwide and employs nearly 140,000 people, according to company materials provided to investors. Kohl’s Cash gained national attention last year as part of Wisconsin Gov. Scott Walker’s short campaign for president. In stump speeches across the country, Walker often touted his family's frugality and use of Kohl’s Cash to connect with voters.
Follow Keegan Kyle on Twitter: @keegankyle