Fair Trading Minister Anthony Roberts is urging consumer caution with online group buying schemes offering huge discounts.

Mr Roberts said consumers should check the terms and conditions for online discount vouchers, some of which may offer up to a 90 per cent discount.

“Online voucher sellers claim to offer big savings on goods and services including car washes, beauty treatments, dinners, overseas holidays and even flowers,” he said.

“While people may make significant savings, they should be careful when considering such offers and carefully check the terms and conditions that may affect redemption.

Conditions that could affect the savings include:

• the location of participating businesses
• time limits on use or limits on available products
• clauses tying discounts to the purchase of other products or services at full price and
• the closure or change of ownership of participating businesses.

Mr Roberts said complaints to Fair Trading about businesses making such offers include non-receipt of refunds, services not meeting the description and failure to honour the voucher because of higher than anticipated demand.

“Like most contracts, consumers may not be able to get a refund if they change their mind,” he said.

“However, consumers may be entitled to seek redress from the online provider if the product or service was misrepresented or the conditions imposed were not disclosed at the time of sale.

“For businesses, these schemes offer the opportunity to advertise and obtain new customers.

“However, before agreeing to participate, businesses should consider the potential number of vouchers to be sold and what impact this may have on their business. Any conditions a business wishes to place on use of the vouchers should be clearly outlined.”

Mr Roberts said he did not want to discourage businesses from marketing voucher and coupon offers.

“Businesses are using online offers to give themselves an edge in a tough market and most are doing so in good faith,” he said. “Consumers have a right to know what they are buying and businesses that clearly explain the terms and conditions will be helping consumers make this choice.”

Anyone having a problem with an online provider offering these types of deals can contact Fair Trading on 13 32 20 for advice.

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