AFAIK they're not. Before you assume you've been gipped however, I suggest you go back to the store and ask the person who sold you how to make the labels. I suggest you record a video of the whole thing as well.
The Bestbuy salesman just told me the same thing. He said, I can use lightscribe dvds with the laptop he sold me which has label flash dvd drive. After hours of trying to get this thing to burn a label, I got it to burn a label on my lightscribe disk, but on the data side only. It wiped out my data in doing so.,
By the way, you can burn data to light scribe disk no problems.
We just thought the BestBuy guy was stupid or worse but it seems that they have been told to say this. We tried and we're pretty savy having had LightScripe for years, to no avail. We didn't want what we got in the Acer bundle so I guess we'll know better next time. We are happy with our 2nd Acer but the Flash Labler is just a DVD burner. And, they do not have CDs which my husband needs for burning music CDs. Thumbs down, Flash Label...