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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-09-27 Daily Xml
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GROUP BUYING WEBSITES

The Hon. I.K. HUNTER (15:15): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about group-buying websites.

Leave granted.

The Hon. I.K. HUNTER: I have seen in the media more and more reports of group-buying websites in Australia, otherwise known as collective buying. I am advised by those more attuned to the digital age that they provide consumers with an opportunity to purchase a bargain online, whatever that means.

I understand that concerns have been raised about whether consumers are getting value for money and, indeed, whether consumers know their consumer rights before proceeding to push the 'purchase now' button—and I have no idea at all what that means. I ask the minister: can she advise the chamber and those honourable members with an iPad or an iPhone what consumers need to look for when purchasing from these websites?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (15:16): I thank the honourable member for his most important question and his personal interest and passion for this particular policy area. Indeed, group-buying websites of the nature the honourable member has referred to are increasing in popularity. Group-buying internet traders negotiate deals with local businesses to offer discounted goods and services in exchange for an increase to the business customer base. This is usually in the form of a 'deal of the day'. These traders offer third-party deals for things such as hair, beauty and personal care services, restaurants and cleaning services, to name just a few.

While consumers can buy direct from the website, they can also sign up as members, where they are informed, via email, of daily deals in their local area (these deals may have a purchase time limit), and they then go off and buy these products that are part of this business deal. Buyers purchasing the deals are often required to print off a voucher to claim their discount at the retailer.

Since 2009, Consumer and Business Services have received around 22 inquiries and complaints about group-buying websites. Although that might not sound a lot, we are concerned that, with their increasing popularity, the number of complaints and problems will also escalate. As I said, there is a growing trend in the use of these particular websites and consumers need to be aware of their rights, just as they should be aware of their rights when purchasing any service or product in-store.

When looking at purchasing a coupon from a group-buying website, consumers need to be aware of exactly what is being offered and what the deal excludes. While they can offer value for money for consumers, group-buying websites can present issues when redeeming a coupon if the service cannot be provided at a suitable time due to excessive bookings or short expiry dates. Often, what we find is that the conditions—

Members interjecting:

The PRESIDENT: Order! It takes two to yap across the chamber. They should both be quiet.

The Hon. G.E. GAGO: —around the bargain are so difficult that they are impossible to abide by; for instance, the amount of time given to take up the offer might be so short and all other opportunities, say, for instance, the restaurant might be booked out until after the offer expires.

Under the Australian Consumer Law, it is an offence for a trader to accept payment for goods or services and not supply them within a reasonable period. Therefore, if a service provider has agreed to a promotion, they have an obligation to deliver those goods or services. Guarantees such as statutory warranties under the Australian Consumer Law apply to almost all goods and services sold to consumers, and that includes goods and services supplied under these sorts of offers. Consumers who rely upon representations made by the supplier of the coupon may be able to seek remedies. However, each case needs to be assessed on how the goods or services were represented and sold in the first instance.

Maximum penalties of $1.1 million for corporations and $220,000 for individuals may apply where it can be proven that the supplier either did not intend to supply the goods or service or could not supply within the stated period or within a reasonable period.

Before handing over payment—that is, pressing the 'I want to buy this' button or purchase button—consumers should check with the group-buying website to see what refunds are offered and carefully read over the associated terms and conditions, including expiry dates on coupons. Any consumers who experience difficulty in redeeming a voucher should immediately contact the group-buying website for a refund and, if they cannot resolve it with the retailer firsthand, they should seek advice from CBS.

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