After talking to a manager, it looks like it is a valid promotion in three areas, Baltimore, Chicago and NY. However in those places you need to have the area specific coupon that has your store name listed (~30 stores total). Those are a special group of KMarts that have a lot of promotions. If you have that, the coupon will scan and they will accept it. Of course they blanked out the pdf files for the store specific coupons today and I only have one left.