Australia takes the lead - Group Buying Code of Conduct Launches

02 November 2011

The Group buying phenomenon has taken Australia by storm and today ADMA is pleased to announce the launch of the Australian Group Buying Code of Practice.

This initiative is a world-first, with ADMA and AIMIA taking the lead to develop a Code of Practice specifically for the group buying industry. The Code will both establish industry benchmarks for group buying sites and also introduce standards that will increase consumer confidence.

Group buying has gone from strength-to-strength in Australia. A new market report published by Telsyte shows that the group buying market grew from $123.9 million in Q2 2011 to $158.5 million in Q3 2011 and is well on track to exceed market forecast of $400 million for the 2011 calendar year.

The Group Buying Code has been launched along with a logo that identifies Group Buying Code Members. The logo can be used by companies that actively become signatories to the Code and agree to abide by the standards contained within. Leading group buying companies that have already come on board as founding signatories include OurDeal, Cudo, Spreets, Groupon, LivingSocial, Ouffer, Scoopon and Jump On It.

ADMA has been instrumental in developing the Code provisions and will continue to play a key role in this important self-regulatory initiative that will maintain high industry standards now and in the future.

Why has a Code of practice been developed?

Group buying is growing at such a rapid rate and being used by an increasing number of consumers. This requires a code of conduct that is specific to the group buying experience so that there are tailored standards applicable to group buying sites and protections in place for consumers. The aim of this Code is to provide a benchmark against which group buying organisations will be measured and in which consumers can trust.

What are the objectives and advantages of this Code?

The key objectives of the Code are:

1. To ensure the consumer have access to product and service information they need to make informed choices about their group buying purchases
2. To promote compliance within the industry with relevant laws including Competition and Consumer Act 2010, Privacy Act 1988 including the National Privacy Principles and the Spam Act 2003
3. Promote fair, honest, ethical best practice within the group buying industry
4. Increase consumer confidence in dealing with group buying sites

The Code sets out some minimum standards that group buying companies should follow and encourages them to:

1. Make sure that all communications are clear so that subscribers fully understand the offer before they sign up to it
2. Make sure that appropriate policies and procedures are in place
3. Ensure all marketing and electronic messages comply with the relevant legislation

How will complaints be handled?

The Code includes an independent and open complaint-handling process. Initially, the consumer is encouraged to resolve their complaint with the group buying site. If it’s not resolved to their satisfaction, the consumer may complain to the ADMA Code Authority who will handle the complaint on their behalf to reach a resolution. The ADMA Code Authority is there to ensure the minimum standards set out in the Code are met.

More information can be found in the Australian Group Buying Code of Conduct document.

ADMA runs regular 1 day Compliance for Marketers courses which provides solid grounding in the main pieces of legislation affecting marketers. The next course will run on December 1 in Melbourne.

Visit the website for more information.