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MSE News: Daily deals code of conduct launches... but without Groupon

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MSE News: Daily deals code of conduct launches... but without Groupon

edited 30 November -1 at 1:00AM in Shop but don't drop
7 replies 1.9K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Shop but don't drop
"A new trade association for the daily deals industry has developed a code of conduct which aims to protect consumers ..."

Replies

  • Great idea. I am a big searcher of deals and do not buy anything without researching prices and company reviews. I will not touch Groupon or others offering similar deals with a barge pole as i do not trust them. Maybe this could be extended to companies who offer 'savings' on products that are utter rubbish. They have either had prices inflated for the set period of time or are loss leaders to get you instore to find there is no stock available. OK they may hold up legally but they are not moral
  • trynsavetrynsave Forumite
    812 posts
    Part of the Furniture 500 Posts Combo Breaker
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    I have bought several 'deals' from Groupon in the past but they have not really been the sort to get cancelled through oversubscription eg, Lovefilm, photobooks etc.

    I have looked at spa breaks and holidays but decided against them for fear that they wouldn't be honoured. For example Groupon currently have an Edinburgh stay for 12 self catering. Sounds great till you notice that 55 have been bought and that it expires at the end on July. What are the chances of everyone slotting together to get an acceptable break?

    The company knows how many they can afford to sell at a given price, either to top up at low season or to stir up interest in their brand. They cannot afford to either give too many away or to open themselves up to negative feedback from disappointed customers. The sooner this gets sorted out the better!
  • ConsumeristConsumerist Forumite
    5.4K posts
    Part of the Furniture 1,000 Posts Name Dropper
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    " If a firm breaks the code the GDDA could ask for an apology, or ask it to correct the breach. " :rotfl:

    I like to see teeth - not gums. Think I'll continue to avoid them like the plague.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • ConsumeristConsumerist Forumite
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    Part of the Furniture 1,000 Posts Name Dropper
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    A Groupon spokeswoman says " . . . We welcome these types of initiatives and will evaluate them on an on-going basis."

    Is this Groupon-speak for

    "Only if we lose business to the wimps who have subscribed to this rubbish will we even consider signing-up to it. We are here to make money, not to take responsibility for any service we offer." ?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • DaleNDaleN Forumite
    27 posts
    I had a quick read through the code of conduct. It is quite weak in several areas:

    Contrary to what the GDDA claims, there is nothing at all which will effectively deal with over-selling. Their argument that the terms and conditions should show "any limitations or restrictions on the offer" (section 5.1.2) is flawed. There is no requirement for any offer to actually have a limitation, and no requirement for the DDP to enforce a limit, so section 5.1.2 would only apply if the merchant specified a limit voluntarily. If they didn't specify a limit up front - which is what caused all the problems in the first place - there wouldn't be anything stated in the offer and over-selling would continue.

    Section 5.1.1 says that the offer should state the discount, which of course they always do because that's the big selling point, when you can claim "90% discount". There is nothing in the code to prevent artificially inflating the non-discounted price in advance so that you can claim a big discount.

    Requirements for a stated refund policy include scenarios when the merchant fails or the goods are faulty, but nothing about what happens if the DDP fails after you order but before you receive your voucher. It should be made clear that you are buying a voucher from the DDP, and until you've received your voucher your relationship is with the DDP not the merchant.
  • tjn1970tjn1970 Forumite
    5 posts
    Just thought I'd say that there is not always problems with these sites' customer services. We had a problem with a Groupon deal (merchant didn't send item nor respond to email) and Groupon were very helpful, and consistently polite. There was no argument about getting our money back. Initially they refunded Groupon credits but then I just sent an email saying I wanted money back not credits and the money was in my account within 24 hours.

    On the other hand we are experiencing massive problems with KGB with the merchant not sending the item which should have been delivered within 14 working days, and it is now nearer 40. The merchant just keeps saying 'as soon as possible' and giving various reasons for the delay. KGB just saying they are 'working with the merchant to get the goods to us'. And we keep asking for refund as it is now too late (it was a gift for our daughter's birthday) - to which we get no acknowledgement or response.

    We'll continue to use Groupon but will never use KGB again....
  • I used KGB for the first time last week. The code they gave me was invalid and they are hopeless in getting back to me. They promise to return with a solution, but keep extending the time. I've now given them one last chance before I claim the money back via my bank. Useless and I would not recommend them
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