Discounts and rebates have been a longstanding practice of
sellers in order to lure customers to buy their products. The
practice goes by various different names, often used
interchangeably,1 as loyalty or fidelity
discounts/rebates, quantity or volume discounts/rebates or bundled
discounts/rebates. Loyalty discounts or rebates are agreements
whereby a seller gives discounts to buyers on fulfilling a
condition in purchase which may range from buying some percentage
of the relevant product from the seller to buying all of it.
Discounts are generally offered on individual transactions, while
rebates are normally deductions or cash payments made
retrospectively to a customer in accordance with the latter's
purchases over a period of time.2 However these terms
are used interchangeably in competition law literature. Scholars
opine that the terminology of discount or rebate may be misleading
as it suggests that these schemes offer lower price to buyer, which
may not be true
