Ms Dinh is among a growing number of Victorians voicing their complaints about Australia's ever-growing number of group buying websites, such as Cudo, Spreets, Scoopon and LivingSocial. So far this year Consumer Affairs Victoria has received more than complaints from consumers about group buying sites. This compares with just 22 similar complaints last year. Group buying websites offer their subscribers huge discounts on goods and services such as beauty treatments, meals and accommodation. Businesses can typically offer cheaper prices on their products because they are bought in bulk from the group buying site.
However, the model is failing many consumers who are finding it difficult to redeem their coupons and some small businesses who are finding they can't honour their deals due to the overwhelming uptake. Jo Ucukalo from Handle My Complaint, which takes up complaints on behalf of consumers, says she has seen complaints about group buying sites double in the past year.
For example, some consumers are being turned away from restaurants on certain nights because they are coupon customers or are being offered restricted menus. But in the three hours AdNews tracked Groupon-Stardeals maiden offer, the number of packages sold had quadrupled to Instead, Groupon has launched via Stardeals. They gravitate to the best deals in the best locations with the best discounts.
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