Group Buying Industry Adopts Code of Conduct

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After being riddled with negative publicity, the group buying industry has unveiled its first Code of Conduct in a bid to increase consumer and business confidence.

The Australian Direct Marketing Association (ADMA) and the Australian Interactive Media Industry Association (AIMIA) have today jointly released the Australian Group Buying Code of Conduct.  There has been much public outcry from disgruntled group buying shoppers and there has long been speculation that the industry needs to be regulated.

Consumer Affairs Victoria has been inundated with complaints and queries about group buying websites. While consumers’ rights are clear under Australian Consumer Law, resolution processes are often frustrating and time-consuming.

The Australian Group Buying Code of Conduct aims to be an independent, transparent and open complaint-handling process when consumers have been unable to resolve an issue with a group buying company in the first instance. The complaint handling process will be managed by the ADMA Code Authority.  The Code of Conduct is yet to be incorporated into the existing ADMA Code of Practice.

The code outlines best practices for group buying platforms, including:

a)  making all communication methods clear so the subscriber fully understands the offer before accepting it

b)  making sure the appropriate policies and procedures are in place and are available to subscribers

c)  ensuring all marketing and electronic messages comply with relevant legislation.

In addition to the code, signatories are taking additional steps to reinforce with merchants their obligations under the law.

Founding signatories to the code of conduct include Cudo, Groupon, Jump On It, LivingSocial, Ouffer, Spreets, OurDeal and Scoopon.

Julian Holman, Chief Executive Officer of OurDeal said, “In order to grow sustainably, group buying companies must promote transparent and ethical practices. This industry code of conduct is a critical step for the group buying sector and OurDeal values the opportunity to have been engaged in its development. It sends a loud signal to consumers and merchants that this is a mature and responsible industry that exists to serve the greater good of Australia’s retail sector and Australian consumers. We fully support the Code of Conduct and will be working closely with ADMA and AIMIA to ensure we continue to deliver the best possible experience for everyone we work with.”

To download the full version of the Code of Conduct, click here.

Article by Natasha Sholl

Natasha is a content creator for The Media Pad, publisher of Power Retail. She has a background in law and communications and a passion for all things retail. Natasha loves analysing and problem solving all of the challenges and trends that come with new media and the online retail space. Natasha is a yoga addict and reluctant running devotee, both of which are offset by her serious caffeine addiction and obsession with baking.

One Comment

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  • Vincent
  • 2nd November

  It’s a good news that the key players in the group buying industry have agreed to adhere to a code of conduct. Hopefully that will help build a strong foundation for a brand new sector.

  Reply