Counterfeit Coupons Issues, Voluntary Best Practices, Discussion One of the industry’s most significant challenges –Expensive for all parties –Challenging to predict –Undermines the integrity of the industry –Simple solutions hard to come by –Many “glitches” are self-imposed

CIC’s Strategic Vision Multiple Solutions to a complex challenge –Physical Security –Early Detection –POS Security –Illicit Coupon Sales –Strategic Alliances with Law Enforcement JICC SOCAP

Physical Security of the Coupon Internet Print-at-Home Coupons –Voluntary Best Practices No Free Product Coupons No PDFs or other image of the coupons Personalization Understanding of consumer experience on each browser Consumer Response Coupons –Holograms –Design Changes/Standardization –Constant Monitoring of Redemption vs. Circulation –Personalization

Early Detection Technical methods Internet activities Retailer education & awareness Monthly vs. less frequent data review

POS Security CIC Early Warning System –Program Details Limits set before alerts based on number redeemed and where –Limitations Not in every retailer POS hardware limitations Sheer volume of counterfeits –Show the growth in PSA’s

Illicit Coupon Sales Education Significant markets –Auction sites –Amazon –Facebook –Craig’s List –Darknet –Other

Law Enforcement Limited Resources –Federal –State –Local