Maybe not - they can do what they want, but then that's on them.
Giving in-store only rebates to on-line consumers who live more than 500 miles from a store does zero to their goal of driving foot traffic to their stores.
My solution does not detract from their goal of driving foot traffic to their stores for people who can actually get there and has little, if any, down-side towards that goal and a positive up-side.