Group Buying Code of Conduct Released

02 November 2011

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The Australian Direct Marketing Association (ADMA) has today released the Australian Group Buying Code of Conduct.

As the group buying industry grows into an established channel ADMA and the industry have recognised the importance of developing a code of conduct specific to the group buying experience.

The Australian Group Buying Code of Conduct has been developed on a voluntary basis to:

1. ensure that consumers have access to products and service information they need to make informed choices
2. 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 platforms.

The Australian Group Buying Code of Conduct includes an independent, transparent and open complaint-handling process. This is designed to encourage the group buying industry to resolve established consumer complaints. The complaint handling process will be managed by the ADMA Code Authority.

The code outlines best practices for group buying platforms, including:

1. making all communication methods clear so the subscriber fully understands the offer before accepting it
2. making sure the appropriate policies and procedures are in place and are available to subscribers
3. ensuring all marketing and electronic messages comply with relevant legislation.

In addition to the code, signatories are taking additional steps to reinforce with merchants their obligations under the law.

Jodie Sangster CEO, Australian Direct Marketing Association said, “Group buying is a relatively new phenomenon in Australia. A new market report published by Telsyte shows that the group buying market grew from $123.9 million in quarter 2 2001 to $158.5 million in quarter 3 2011 and is well on track to exceed market forecast of $400m for the 2011 calendar year. All group buying companies are welcome to sign up to the Code and take part in this important scheme.”