TECHNOLOGY SPECTATOR: Groupon's hidden refund policy

Technology Spectator

Groupon Australia joined seven other group buying giants signing up to an Australian Direct Marketing Association-led Code of Conduct last week. But a review by Technology Spectator of Groupon's website has found it is already failing to comply with the code.

ADMA and its code development partner, the Australian Interactive Media Industry Association, say one of the code's objectives is to ensure that consumers have access to product and service information they need to make informed choices. It's all about ensuring transparency in an effort to boost consumer confidence in dealing with group buying sites.

A recent Fairfax report revealed Consumer Affairs Victoria has received more than 160 complaints from consumers about group buying sites this year, compared to just 22 similar complaints in 2010. And that's just from one state of Australia. It's clear the industry has some work to do to protect its future.

Refunds are one sticky area where more work needs to be done, with the Groupon refund policy far from easy to find. The Code of Conduct states that a group buying site must have a clear and unambiguous refund policy that is prominently displayed on its website. But Groupon's refund policy can only be found after scrolling through its rather lengthy statement of terms and conditions, buried in the fine print at the bottom of its home page.

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