A secret rebate refers to a clandestine arrangement where a seller offers a discount or refund to a buyer without disclosing it to other parties involved in the transaction. This rebate is typically negotiated privately between the seller and the buyer, often as an incentive to secure the sale or maintain customer loyalty. Secret rebates can raise ethical concerns, especially if they involve deception or unfair advantages over competitors. In many jurisdictions, failing to disclose rebates or offering them discriminatorily may violate laws or regulations governing fair competition and consumer protection.
n. a kickback of money by a business to a “preferred” customer, not offered to the public or by a subcontractor to a contractor not shown on a job estimate.
Both are illegal in most US states as unfair business practices and may result in criminal penalties or refusal of a court to enforce a contract (written or oral) in which there is such a secret rebate.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/secret-rebate/
- Modern Language Association (MLA):Secret Rebate. dlssolicitors.com. DLS Solicitors. April 18, 2024 https://dlssolicitors.com/define/secret-rebate/.
- Chicago Manual of Style (CMS):Secret Rebate. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/secret-rebate/ (accessed: April 18, 2024).
- American Psychological Association (APA):Secret Rebate. dlssolicitors.com. Retrieved April 18, 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/secret-rebate/
