Secret rebate

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Secret rebate is a form of illegal kickback that breaks unfair competition laws in most states. They can occur in the form of “rebates,” discounts, or other special benefits given to specific customers, suppliers, or contractors which are hidden from the public and not available to others. Secret rebates can harm trade in a variety of ways and can lead to civil and criminal convictions. Depending on the type of secret rebate, they can also break tax and reporting laws. 

[Last updated in August of 2021 by the Wex Definitions Team]