CITYSPREE = Potentially Fraudulent Company!

[amnesiac]

I just tried using one of my MANY cityspree GC's at a restaurant and was pretty much laughed at by the entire staff. (india's tandoori, Los Angeles)

Apparently they've NEVER heard of Cityspree before, and have had several people come in with these supposed "Gift Certificates." The restaurants repeated calls have gone unanswered.

It was not only humiliating but it upset me greatly that a company would sell gift certificates to stores that don't even know about it.

**UPDATE**

Apparently SOME places take these and not others. Check BEFORE you buy to make sure. Stupid Cityspree. Grr.

 

[kimdani1]

That's rough. I remember when people were getting false e-mails saying they could go to Taco Bell and ask for free tacos or something like that. They felt really stupid when they found out the hard way that it was a hoax.

This is even worse because they charged your for it. I'd be pretty ticked off if this happened to me. Hope you didn't have to wash dishes...

 

[rahvin]

if you paid by credit card dispute the charge.

 

[Tri]

Just had a somewhat similar experience:

Got a $25 GC, went to a restaurant and was told that their CitySpree.com rep informed them two weeks ago that the company was filing for chapter 11 and would not honor any more GC's. Needless to say I will neither go to that place again (they need to get their story straight - CS looks like its still operating) nor will I rest till CS pays me back.

-Tri

 

[RossMAN]

I'm HOPING that this is not true. I just bought six GC's from CitySpree.com

Fortunately my average purchases were only $6-8 each x 6 = $48.

I've only had two bad experiences with CitySpree GCs:
1) Went to a pizza place they looked at me really funny when I handed them the CitySpree GC. Then they called the owner who said it's cool. So they honored it.
2) Went to Benihana with my 2 roommates (40 minute drive away from home during rush hour traffic) and they did NOT honor the GC saying they had no knowledge and were added without their permission. Fortunately they told us BEFORE we had ordered anything. Since we took the long trip we ordered and paid regular prices but the food sucked and the prices are outrageous. Benihana is suck.

 

[TurtleMan]

crap i almost bought some... man now a lot companies are bankrupt, just now my DSL company went bankrupt... crazy..

 

[madmacks]

noooooooooo! i was looking forward to using mine. damn them! ill still give it a shot and hope for the best.

 

[snakesnfrogs]

Hope this turns out to be a misunderstanding---my brother recently purchased about a dozen different GC's from CitySpree.

 

[Healey]

I've used 4 of them in the L.A. area so far without any problems. But I think I'll call ahead before venturing out with the others, thanks for the heads up.

I'm sure you'l get your account credited, but what a pain!

BTW I've used them at DuPars, Karl's Steak, Dalts & Fablious.

 

[amnesiac]

UPDATE - I called around and I know at least ONE place (Tokyo Delve's) accepts them w/o a problem (the guy said they've taken a few of them before)

But generally I think you should make sure the GC is valid BEFORE you eat.

 

[RossMAN]

But generally I think you should make sure the GC is valid BEFORE you eat.

This is great advice but we shouldn't have to first verify with the merchant before ordering a GC. I'm going to have a really nice chat with CitySpree's CEO & Founder Anne Stanton.

 

[RossMAN]

Here's an interesting CitySpree news article

Exclusive Reports
From the January 12, 2001 print edition



Online coupon auction business launches potential bidding spree
Ed Hicks
With a titillating marriage of old sales methods and new technology, New York City-based Cityspree is poised to launch its Memphis operation Feb. 1.

Cityspree is an advertising vehicle in which visitors to the Web site -- http://www.cityspree.com -- bid on gift certificates offered by businesses and service companies in five sectors: food, entertainment, travel, retail and services. Businesses pay in trade for their presence on the Web site, but it costs them money only when the customer comes in to redeem the gift certificate.

It's a way to get small businesses to the Internet, and Internet users to those businesses. Cityspree connects small businesses to customers in their communities.

"We get people to their door," says David Stuckey, director of marketing.

That makes City-spree different from "forced advertising," the kind that comes in the mail or in newspaper inserts. In forced advertising a 3% return is considered good. But the Cityspree user has already bought the business's product in the form of a gift certificate.

The money paid for the certificate goes directly to Cityspree. No cash changes hands between Cityspree and the businesses that advertise on the Web site. Mike Fineman, vice president of business development for Cityspree, calls it the next evolution of the entertainment coupon book.

Memphis account executive Burton Milnor has signed up a number of businesses in advance of the Feb. 1 launch, including restaurants Blue Moon and Blue Monkey and clothier R. Forsythe.

"I don't want just anybody on the site, I want quality," Milnor says. "I'm not trying to sell McDonald's."

Businesses can buy a listing on the site for $1,500 per year. From that, the level of advertising goes as high as $7,200. The $3,000 level and above include a home page on the site and a link to any other home page.

Ray Forsythe, owner of the clothing store, says he's going with Cityspree because he has no Web site of his own and Cityspree offers him the opportunity to try Web-based advertising risk-free.

"If they buy the gift certificate they're going to come in," Forsythe says. "And if nobody comes in, I don't pay for it. It appears to be cost-effective."

Cityspree is the first online local auction site on a national level featuring gift certificates. It has its roots in Metro Cash Card, a successful online savings book program business of Cityspree founder and CEO Anne Stanton. Founded in 1999, Cityspree launched its first market in November 2000, and is now open in 22 markets. Fineman says he expects that number to grow to 120 this year.

To date Cityspree has received $21.5 million in investment from Continuation Investments Partners LP and from the founder and various individuals.

Cityspree's business-to-consumer model goes against today's conventional wisdom that future e-commerce growth belongs to business-to-business models.

"Wall Street changes their minds on a dime," Fineman says. "The bottom line is you've got to have profitability, and we are taking advantage of the Internet to do that."

CONTACT staff writer Ed Hicks at 259-1730 or by e-mail at ehicks@bizjournals.com

 

[hojl]

I have had both the good and the bad. Usually good most of the places I goto I ask first before I sitdown and order. Also I ask what it is good for because I dont want to somehow order something and not be covered. I did however had one resturant say to me that it will only honor 25 outof 35 dollars.

The resturants I have had no prob with SO FAR.
Round Table Pizza in FUllerton and Tustin
Oasis in Irvine (pretty good food)
Left at Aburquerque.

 

[Seattle]

I bought 38 certificates from 9 restaurants. After reading this thread, I called all of them and found one I purchased 3 from that claimed they knew nothing about it.

However, one of the restaurants gave me their sales agents number and I called him and he told me that the one company that claimed they knew nothing about them were not telling the truth, he had signed them up as he had all the others.

You really better hope that Cityspree doesn't sue you for posting this, I would. You've done a real number on a company that is just getting started, and you might want to check with your insurance agent and see if you have any coverage though liability insurance that some give with tenants and homeowners insurance.

It may be news to you, but some merchants do things like this to screw people. I used to work for Visa, and you would not believe some of the things merchants are capable of.

 

[brown234]

Actually this isn't the first time i've heard people having problems with these gift certificates. I remember reading on dvdtalk.com about people having some problems. I would definately call the merchant before buying these.

 

[RossMAN]

I remember reading on dvdtalk.com about people having some problems.

I think this is the DVDTalk.com thread you were referring to.

I'm hoping that it's a simple misunderstanding and that things will go smoother, eventually.

 

[mmarcuse]

I don't know why this is a problem. Order your food, eat it, and then give them the certificate. If they don't want to take it, they don't have to. Leave it on the table with any extra cash you owe and walk out. If they choose to give you a problem, they aren't living up to the terms of their own certificate.

Cityspree is probably not commiting fraud here, the restaurant is. I can't understand why a company would lose a long-term potential customer over a single certificate that they signed up for.