Americans getting better deal than Canadians on rebate for Samsung washers

Samsung, the giant South Korean conglomerate, is having one of those years.

Most people have heard about its premium Note7 mobile phones catching on fire. But that's not the end of it.

Samsung is also dealing with washers that can come apart, and is now facing questions about why Canadian customers are being offered different terms than Americans on rebates for those recalled washers.

"I don't feel it's fair compensation and I don't understand the difference between the Canadian and the American deal," said Gareth Milligan of Port Coquitlam, B.C.

Milligan, who bought his Samsung washer about a year-and-a-half ago, says he hadn't had a problem with the machine. Then he began to see reports of the top loading washers blowing apart.

On Nov. 4, Samsung issued a recall stating "the drums in these washers may lose balance, triggering excessive vibrations, resulting in the top separating from the washer. This can occur when a high-speed spin cycle is used for bedding, water-resistant or bulky items and presents an injury risk to consumers."

Milligan stopped using his washer for a time, looked up both Samsung Canada's and Samsung America's rebate terms online, and noticed a significant difference.

Both Samsung Electronics Canada and Samsung Electronics America offer the option of a free in-home repair, which comes with a one-year extension of the manufacturer's warranty.

The rebates differ, however, when it comes to the second option.

Limited options north of the border

Americans are offered "a rebate that can be applied towards the purchase of a new washer from Samsung or other brand. Consumers who choose this option will also be reimbursed for any installation and removal fees charged by the retailer."

Canadians are offered "a rebate that can be applied towards the purchase of a new washer from Samsung. The rebate amount is based on the manufacture date and model of the recalled washer."

So, Canadians can only use their rebate to buy another Samsung washer. Americans, on the other hand, can use their rebate to buy a washer from any other brand. On top of that, Americans will also have their installation and removal fees covered.

Milligan says he then called Samsung Canada and spoke to a customer service representative.

"I would rather the rebate for purchasing a different brand and she said again, that's only for Americans. I asked to speak to someone further up. She brought another person on the line; she said again it was only available for Americans [and] didn't give an explanation."

Marketing expert 'baffled'

"I would be baffled to get this line from Samsung," said Mandeep Malik, assistant professor of marketing at Hamilton's McMaster University.

"It seems rather odd that they would have different solutions for markets that are in such proximity of each other, where information would be shared so rapidly between consumers and media.

"From Samsung's perspective, they may have seen different levels of risk in the marketplace. Having sold a relatively smaller number of washers, they might not see us as litigious as those in the United States, and they came up with a different solution."

"But from my lens, though, it's not a very smart way. This solution should be exactly the same whether it be Canada or the United States."​

Samsung's (non)explanation

Samsung Canada, through its Canadian public relations firm North Strategic, declined to do an on-camera interview.

North Strategic's Jessica Savage issued a statement via email that didn't respond to any questions from CBC News and simply repeated the terms of the recall available from Samsung Canada.

"In Canada, we are pleased to offer consumers two choices. A free in-home repair including a one-year extension of the manufacturer's warranty or a rebate, inclusive of a loyalty incentive, that can be applied towards the purchase of a new washer from Samsung." wrote Savage.

That's not good enough for Gareth Milligan, who worries about the safety of his kids and now only uses the machine when he has to — with the door closed, and when the kids aren't around.

He said because of Samsung's problems with their phones and washers, he doesn't feel comfortable having his washer repaired and doesn't want to buy another Samsung product.

"I've lost confidence in Samsung as a brand," he said.

"The other option is to just now have to buy another washer and spend $1,200 of our own money and not receive any rebate at all for a different brand which to me isn't fair either."