Buying group-buying program deals
Group buying is also known as collective buying, or ‘deal of the day’ offers.
Group buying offers discounts on goods and services by:
- grouping you together with other people to buy in bulk
- asking you to give your payment details to ‘pledge’ to the program.
Once the minimum number of people sign up, they will:
- confirm your purchase
- finalise your payment
- send you a voucher to redeem the deal.
We have received reports about:
- non-supply of goods or services
- only partial supply of goods or services
- difficulty in redeeming vouchers
- difficulties booking in for services.
Some businesses find that these programs greatly increase the demand for their goods or services. They may find it hard to cope with all the extra business.
The Australian Direct Marketing Association (ADMA) has a group buying code of conduct. It makes sure there are:
- standards in place for group-buying sites
- protections in place for consumers.
Use common sense and do your research on any offer. If a deal looks too good to be true, it probably is. Make sure to read the terms and conditions carefully, especially for cancellations.
Talk to the participating business to find out:
- if the deal is a genuine discount
- whether they can honour the deal at a time that suits you (regardless of any increase in demand).