Updates on the SM Advantage story

Just so you guys are updated, I filed a formal complaint to DTI via email yesterday morning:

==

Dear Sir/Madam,

Kindly read the email exchanges below [see previous post] as backgrounder. I am very much irritated and disgusted at the deceitful way SM Advantage has been doing business. I received the original email about the Philam Accident insurance just two days ago and was shocked that they can blatantly assume their members' wishes.

As of this writing, my last email to them is still unanswered. I called their hotline this morning and, again, was shocked when I was informed that they have been deducting points from me for the stupid insurance since 2006! The CS rep even had the gall to repeatedly tell me "Mam, kasi program ng Philam yan" as if SMAC had nothing to do with it.

My goodness, imagine the millions of pesos this company has been earning all these years from how many thousands of members whom, I'm sure, many of which wouldn't bother to complain about a measly 20 points. But if you think about it, P20 x say, 10,000 members already gives them P200,000 in profit!

I really hope you can take immediate action against this. Thank you very, very much! I await your speedy response.

Also, I'd like to commend DTI on the prompt and polite service I got when I called your hotline a while ago. I'm glad you have well-trained CS reps who really know how to talk to callers.


Sincerely,

****


==

The DTI replied to me and CC'd SMA:

Dear Ms. ****,

This has reference to your complaint against SM SM Advantage Card, please find below a letter sent to us by SM in response to an earlier complaint with a similar subject and we placed in anonimity the name of the complainant in this SM letter we are forwarding to you. Since the subject of this letter is of a similar nature and the said complainant was clarified on her issues agaisnt SM, we are looking forward that said letter will clarify your issues and concern on the said SM card.

Letter sent to us by SM

Dear Atty. Asis,

This is in response to the letter from Ms.______ regarding the opt-out insurance scheme offered by the SM Advantage Card program.

At the onset, we would like to assure Ms. _______. and the Department of Trade and Industry that the SM Advantage Insurance Program was developed with the best of intentions. It intends to offer cardholders an option of insurance protection at affordable cost conveniently.

The mechanics of the SM Advantage Card Insurance Program is such that when an SM Advantage Cardholder has accumulated 70 points, he is automatically awarded a Php 100,000.00 Accidental Death or Permanent Disability cover for only 20 points (equivalent to 20 Pesos). This program is automatic but not compulsory. Any Cardholder has the option to decline this privilege anytime through SM Department Store's Customer Service Counters, by fax or through the Philam hotline. Once the Cardholder declines this privilege, the 20 points used for his or her enrollment in the Program are promptly credited back to his account. The automatic nature of the scheme ensures that the Cardholder can immediately enjoy the insurance coverage benefit without any lapse of time.

Recognizing the importance of insurance for every individual, SM and its partner, Philam Insurance, have created one of the most convenient and affordable programs in the market to ensure that its Cardholders can acquire basic financial protection against accidental death or permanent disability. With this modest motivation in mind for the Program, we continue to proudly extend this privilege to our Cardholders by providing them the following advantages:

• Extremely accessible and convenient insurance coverage simply by being an SM Advantage Cardholder.
• The Cardholder is provided with an opportunity to have an insurance coverage without any cash layout. If the Cardholder would try to acquire an Accident Insurance outside the Program, it would cost approximately 500 Pesos. With this Program, a Cardholder has access to a substantial amount of insurance for only 20 points. The proceeds of this insurance can be claimed on top of any other existing life or accident insurance plan that the Cardholder may have for death or permanent disability due to accident. In short, it will never be a duplication of any other insurance coverage.

We have regular communications with our Cardholders about this membership privilege through flyers and full page advertisements in the most prominent daily broadsheets (Philippine Star, Philippine Daily Inquirer and Manila Bulletin). Moreover, we will be continuously exploring new communications channels to help enhance the awareness of our Cardholders and their understanding for this Program. This is a genuine effort formed through the partnership of two highly respected and stable companies that ensure all legitimate and admissible claims under the Program are paid to the rightful beneficiaries at all times.


Most Sincerely,

REY T. MACLANG
Asst. Vice President - Marketing
Marketing Convergence, Inc.
Bldg. D, SM Corporate Office, Bay Boulevard
SM Central Business Park, 1300 Pasay City
Philippines

Phone: +63 (2) 831-8000 local 4979
FAX: +63 (2) 831-6600
Mobile: +63 (0918) 948-9754
Email: RTM@sm-shoemart.com

===

Did that email answer my main concerns on their so-called process of "communicating" with their customers? Definitely not! So I composed another reply:


Mr. Maclang,

I will concede that the program you are implementing MAY be beneficial to your members IF we knew about it in the first place. Heck, I might even be happy to be enrolled if I was informed BEFORE you deducted any points from me. As it is, you sent me an email regarding MY insurance 3 MONTHS BEFORE it expires. And as of this morning when I called your hotline, imagine my shock when I was told that I have been being deducted points for this "benefit" since 2006! What if I met an accident last year or the year before that? Would I have been able to claim anything from Philam when I didn't even know that I was insured?!

When you said "We have regular communications with our Cardholders about this membership privilege through flyers and full page advertisements in the most prominent daily broadsheets (Philippine Star, Philippine Daily Inquirer and Manila Bulletin)" that is not the proper way to communicate! Because then, you are wrongfully assuming that all your members will read those announcements. Just to let you know, I'm one of those who haven't. Is SMA that lazy to send snail mails or emails directly to your members so that we would be informed firsthand about your so-called program? Or will that cut your earnings from this Philam tie-up huh?

You further said so yourself that "Moreover, we will be continuously exploring new communications channels to help enhance the awareness of our Cardholders and their understanding for this Program." Based on this statement, anybody sane enough would immediately understand that you RECOGNIZE your shortcomings of falling short in terms of proper information dissemination with regards to your cardholders' awareness about the program.

WHY HAVEN'T YOU INFORMED YOUR MEMBERS BEFORE ENROLLING US IN THAT INSURANCE PROGRAM? That is my main complaint! Perhaps if you did that, you won't be receiving these kinds of complaints. Or haven't you thought about that?

So don't go placating me with standard letters that don't mean anything to me!

I am very, very disappointed at your attempt to explain away the matter without addressing my main concern.

==

After sending that, I got the same email from DTI but this time, there was a signature of the person who sent it:

Dear Ms. *****,

This has reference to your complaint against SM for its SM Advantage Card, please find below a letter sent to us by SM in response to an earlier complaint with a similar subject and we placed in anonimity the name of the complainant in this SM letter we are forwarding to you. Since the subject of this letter is of a similar nature and the said complainant was clarified on her issues against SM, we are looking forward that said letter will clarify your issues and concern on the said SM card.

For your guidance,

Mario Asis
Head, Legal Affairs Center
National Capital Region

Department of Trade and Industry

12th Floor Trafalgar Plaza Bldg.,
105 H.V. dela Costa st. Salcedo Village Makati

Tel. No. 811-8231 local 218

==

So I wrote another email for him:


Dear Atty. Asis,

As the first email I got from this address had none of your name on it, I mistakenly assumed it came from SM thus my response was addressed to Mr. Maclang. Since I'm sure you've already read my response to that other email, kindly address on your end my main complaint: That of personally receiving a letter from them about the insurance program three months' short of its expiration.

I have just received messages from two friends of mine who received similar emails and were as initially bewildered as I was. It became obvious to me that SM is sending out the emails late so that nobody can file any claims and they simply rake in the payments. Too, their reasoning of having good intentions doesn't erase the fact that they enroll their members in the insurance program WITHOUT our knowledge. Imagine, I was in the dark about it for two years! And they have the audacity to tell us that we have a choice to opt out by filling out a form at their customer service counters. That is so inconvenient! Why couldn't they have ASKED us first BEFORE we were AUTOMATICALLY ENROLLED so that we won't have to be bothered with going through the motions of opting out?!

I hope you got my point.


Sincerely,

*****


==

Well, I got no more replies after that. I don't know if they DID get my point. Ganun ba kalabo yung pagkasulat ko???? O ayaw lang talaga nilang intindihin?

Yesterday afternoon, I was in Makati when my hubby texted that we need dog food pellets. I dropped by SM Supermarket and told the cashier to use all the points on my card. How much was the balance? A measly P133 after the P60+ I used in 2006. Imagine, after all those purchases after 2 1/2 years of membership (including one renewal), hindi man lang umabot ng P200 ang na-rebate ko?! I tell you, SM is not worthy of my loyalty! I won't renew my membership anymore when my current membership expires. And until it does, I won't let my points reach 70 so they won't be able to deduct any points ever again!

To SMAC holders, realize that to get 20 points on your card, you should spend P4000 worth of SM department store items or P8000 worth of SM Supermarket groceries. If you use a credit or even a debit card, your points are cut in half. Ergo, instead of 1 point for a P400 purchase, you'll get 0.5 points. How's that for strategy on their part?

To those who are saying I'm overreacting, no I'm not. I am just standing up for my rights as a consumer who ought to be respected in return by the establishments I patronize. If nobody speaks up when atrocities like these happen, what kind of Philippines will our children have when they grow up? A more corrupt nation? I would hate to see that happen. And I hope this time, at least YOU (the reader) got my point. Stop being apathetic to these kinds of issues. Let's all start fighting for what is right. Cliche as it may sound, I still believe that, together, we can make a difference.

SM Takes Advantage

I need to vent and I'm sure other SM Advantage members here will be interested to know about this.
Yesterday, I got this email from sm-advantage@smtp-sm-advantage.com

==

Greetings!

We are pleased to inform you that you have qualified, and have been enrolled, into the SM Advantage - Philam Personal Accident Insurance Program. Your coverage started last 08/15/07 and will end on 08/15/08. As token payment for this special benefit, we have deducted 20 points from your SM Advantage Card balance.

For only 20 points, the program provides qualified members with the following benefits:

• Php 100,000 personal accident insurance coverage, 24 hours a day for 365 days, anywhere in the world.
  

• Up to a maximum of Php 100,000 for permanent disability due to accident.
  

• Also covers members while traveling on public/private transportation by air, sea and land (except motorcycle).
  

• Death due to drowning, dog bites, snake bites, murder and assault also covered.
  

• Accidental Burial Expense Reimbursement
  

If you feel that this Program is not for you, and that you would rather not be covered, you may Opt-out through either of the following:

• by calling the Philam Insurance Hotline at (02) 528-5202, or
  

• by filling up an Opt-out form at Costumer Service Counter of any SM Department Store, SM Hypermarket and SM Supermarket.

Your 20 points will be promptly credited back to your account should you choose to Opt-out from this Program.

For questions regarding your SM Advantage - Philam Personal Accident Insurance Program you may call the Philam Insurance Hotline at (02) 528-5202 or log-on to www.sm-advantage.com.

Thank you,

Rey T. Maclang

SM Advantage

==

I was like, "Whaaat? I have a personal accident insurance I don't know about and I'm just being informed about it three months before it expires?!" Filled with indignation, I answered the email with:

What kind of stupid promo is this?! You enrolled me into something without my permission and now had the audacity to inform me about it three months before the darned insurance is about to expire????? What's more, you're telling me that I have a choice to opt-out by obliging me to go to one of your branches so I can fill out a form?!

My goodness! I am staggered at the level of unprofessionalism you have just exhibited!

I felt better after sending that. BUT, imagine my surprise when they replied earlier today:

Greetings from SM Advantage!

Thank you for your email and we apologize for the inconvenience and confusion this caused you. If you wish not to be enrolled in the program you may just send us a request and we will forward your concern.

Best regards,
Maricris Arroco
SM Advantage Helpdesk
Phone: +63 (2) 833-8888
Fax: +63 (2) 833-8888 loc 5
E-mail: opns-support.mci.ho@sm-shoemart.com

Wow, how obtuse can they get?! Being one not to back down until I am able to prove my point, I replied again:

Is it not yet obvious from my previous email that I am not interested in your program?

YES, I DO NOT WISH TO BE ENROLLED IN YOUR INSURANCE PROGRAM. SO PLEASE REMOVE MY NAME IN YOUR LIST OF "VICTIMS".

May I just ask, how come you people audaciously assume that all your customers want this and enroll us automatically without our knowledge? I have a mind to report you to the DTI and file a complaint!

Who knows how many SM Advantage Members you've pulled this stunt onto. Yes, to think that 20 points is not much, but if as little as 1,000 members are automatically enrolled, that is already a P20,000 profit on your part! That can already be considered as a scam.

Plus, it is very clear how informing the "enrollees" about our supposed to be "privilege" three months before the one-year coverage expires ensures we don't make any claims. What a sneaky way to do business.

As of this writing, I haven't received any replies from them. I don't know if they still will after my scathing messages. I shared my frustration with several friends and they all agreed that it was an underhanded thing for SM Advantage to inflict upon its members. One even told me that she too got the same email and protested too about the lack of professionalism on the part of the membership program.

I'd also like to share something I sent to my friends who reacted to my SMAC story. This is to prove how deceitful and unfair I am finding SM to be.

Yun nga kaya bwisit na bwisit ako. Siguro kung ininform nila ako at the time na inactivate yang insurance na yan, mas maganda ang magiging reaction ko, mas malamang matuwa pa ako kasi ang mura nga naman nung bayad. Pero as it is, para naman silang tanga na sasabihin sa akin, malapit na mag-expire eh di ba sobrang obvious tuloy na technique nila yung para sure na wala ka ng maki-claim! Pano pala kung na-aksidente ako last year tapos di ko man lang alam na may coverage pala ako against that at kung sakali eh may maki-claim ako di ba?

Saka grabeng tuso ng SM talaga. Biro mo sa points system pa lang, para ka magka-1 point (na piso lang naman!) kelangan mo mag-purchase ng worth P200 sa department store or P400 sa supermarket! Tapos yung green bag na yan, bibigyan ka lang ng additional 2 pts pag gumamit ka pero bawal mag-exceed ng 3 bags per transaction! Duh. Di ko nga magets yung sinasabi nilang double points eh hindi naman.

Kasi sa Shopwise, pag ginamit mo yung canvas bag nila, lahat ng mailalaman doon ng bagger, double points. For example, kung ang worth ng binili mo eh P2000, may P40 na agad papasok sa Wise Card mo. As in ang laki! Kasi last October, nag-claim ako ng rebates, naka P400 ako. After that, bumili na kami nung canvas bag. By March, nagulat ako pag-claim ko ulit ng rebates, P1200 ang nasa card ko! San mo mapupulot yun di ba?!

Also, super tibay nung bag sa Shopwise, saka malaki kaya kahit about 5-10 kg ang ilaman mo, kayang buhatin. Eh yung green bag ng SM, sows, isang lata ng pediasure, ilang canned goods at isang bote ng ketchup lang binili namin ni hubby, nawakwak ang ilalim! As in bumuka yung tahi! Muntik na kamo bumagsak yung bote ng ketchup kung di ko nakita agad (kasi nakasabit sa balikat ni hubby at naglalakad ako sa side nya). Eh di complain kami sa customer service. Pinalitan nila yung bag pero after that, magagaan na lang nilalagay namin.

Admittedly, 'di naman kasi lahat ng products sa Shopwise mura. May mabibili ka sa Savemore na cheaper. Kaya hati ang pag-grocery ko minsan kung saan makakatipid. Pero yun nga, sobrang disappointed ako sa SM kasi obvious na obvious na habol lang nila sa customers eh pera :(

To other SMAC members, I'd appreciate your comments and reactions. I'm also interested to know if you have been "victimized" by them with this kind of money-making activity.