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The Street
The Street
Patricia Battle

Target accused of deceiving customers in rewards app

Target  (TGT) is going viral on TikTok for all the wrong reasons. A woman, who posted a video on the platform, is accusing the retail giant of being deceptive with the coupons it offers in its rewards program app Target Circle.

The woman, who goes by the name Melissa, revealed that she has been a Circle member for years, and visited the store to take advantage of a coupon offer where she would get $15 off of a $100 purchase.

Related: Target pulls back its most controversial merchandise after boycott

She claims that she ended up spending $104 at the store, and used an additional coupon which decreased the purchase total by $1 when she went to check out her items with a cashier, but noticed that her $15 coupon wasn’t applied to the total.

“So she scans my barcode for the app, boom, I watched my total go down $1,” said Melissa. “I said, ‘oh, excuse me, I have this coupon, $15 off.’ She scans my barcode again, nothing happens. We don't know why this is not coming off. So she talks to the lady in the register next to her. Without a beat, the lady goes, ‘oh, nothing on clearance.’ I don't have anything on clearance.”

Melissa said that they then went over the list of items that would be excluded from the coupon, and she said that nothing she purchased was mentioned on the list. The manager was then called over to investigate the situation, and they concluded that since Target recently changed the prices of two items that she purchased, they were considered clearance items, so the coupon was not valid.

Signs advertising the Circle rewards program hang above registers at a Target Corp. store in Chicago, Illinois, U.S., on Saturday, Nov. 16, 2019. 

Bloomberg/Getty Images

“​​They decided to just change the price, so now it's considered a clearance item,” said Melissa. “Nowhere mentioned, not on the sign, nowhere, not a clearance item. So they wouldn't give me my $15 off. That was very frustrating considering not one thing I bought was mentioned in any of the terms or conditions, and clearance is not even mentioned in there.”

Melissa said that she ended leaving the store “very hot” and warned other shoppers to be aware of what they are purchasing at Target.

“I'm pissed because how dare you Target advertise a coupon, and then you don't even honor it,” said Melissa. “So I'm making this video, and I'm also going to be composing an email to Target. For all you people that like to shop there, watch your stuff. Watch what you're scanning because guaranteed not all of it's going to come off.”

@sexymel_77

Target isn’t honoring coupons they have in the app. Whats the deal!? Well, i guess there is no deal. #viral #greenscreen #target #foryou #trending #shopping #circle #couponing #app #beware @target

♬ original sound - M E L I S S A

TikTok users reveal similar issues with Target Circle

Target Circle relaunched in April after first being released in 2019, and the company reported in its first-quarter earnings for 2024 that the rewards program has over 1 million new subscribers, bringing its subscriber base to over 100 million.

Many TikTok users took to the comments under Melissa’s video to share that they too have issues with the Target Circle rewards program.

“Their new coupon system is terrible,” wrote one TikTok user. “I used to always get at least a few dollars off, now I will have multiple trips of nothing before getting a small coupon.”

“I hate their standard target circle now,” wrote another TikTok user. “Back then I use to earn money off every order I buy, now I earn nothing… and my coupons don’t be adding either when I spend the amount they want me too?? Ugh.”

Related: Target CEO has surprising words on retail theft

“target circle sucks since it changed mine doesn't even give me coupons and always tells me I have no rewards despite that I should after making my purchase,” wrote a TikTok user.

During an earnings call on May 22, Target CEO Brian Cornell claimed that the relaunch of the Target Circle added more “value” to the rewards program.

More Retail:

“Target Circle is already one of the largest loyalty programs in the United States, and we've redesigned the program to deliver even more value while making it easier to use and understand,” said Cornell during the call.

Target also revealed that during the first quarter, its comparable sales declined by 3.7% year-over-year, but its digital comparable sales increased by 1.4%. It also reported that its revenue decreased by 3.1%, compared to the same time period last year. 

Related: Veteran fund manager picks favorite stocks for 2024

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