Offering coupons online might seem attractive to a product manufacturer, considering national distribution of a full-page newspaper insert could cost $400,000 or more, Larson said.
However, "I have yet to hear of a technology that couldn't be compromised," he said. Manufacturers have developed security methods to limit fraud, but "the ultimate problem is the person who has to check it is a cashier at a grocery store," he said.
One fake coupon can cost retailers and manufacturers hundreds of thousands, and even millions, of dollars, said Bud Miller, executive director of the Coupon Information Corp. Retailers lose because manufacturers won't reimburse them for bogus coupons, and manufacturers lose sales when their products are given away in response to fraudulent offers.
FOR THE RECORD - An article in Tuesday's business section about online coupons incorrectly reported eBay's policy on selling manufacturers' coupons. The Web site permits auctions of coupons with some limitations, such as banning the sale of expired coupons.
The Sun regrets the error.
"Unfortunately, there's been a great number of counterfeit coupons, and some stores decide to do what they need to do to protect themselves," he said.
The nonprofit, founded by major manufacturers, offers $2,500 rewards for information toward the prosecution of makers of fake coupons for free products such as Purina Cat Chow and Deer Park water - two that have been targeted. Sometimes, fake coupons are bought and sold on Web sites.
Klein's and Superfresh say they are investigating other online coupon options.
Superfresh is considering a means to link coupons to store loyalty cards.
Klein's is re-examining its policy with help from its software and hardware suppliers to upgrade its equipment to screen out illegitimate coupons.
"We know there's a lot of pressure. ... Customers are looking for value," Klein said.
More and more manufacturers are making attractive high-value coupons available online for name-brand products, said Stephanie Nelson of Couponmom. com, an online community which helps its members coordinate coupons with sales and rebates.
However, she gets e-mails from her members saying that stores near them will not redeem home-printed coupons. It might not be the corporate policy of the chain but rather a decision made by an individual store manager or cashier.
"It impacts my decision on where I shop," Nelson said. "If you can save an extra five to 10 dollars a week based on printable coupons, ... I can change my store loyalty because of that."
Online coupons still represent only a small fraction of the coupons distributed and redeemed each year, said Matthew Tilley, spokesman for North Carolina-based CMS Inc., which processes coupons for manufacturers and retailers.
