Group-buying deals: A raw deal? 32 complaints in 2011

Bank executive Jeff Lim thought his mid-January holiday was a done deal. He had booked a hotel in Bali last May, and bought air tickets to the Indonesian resort island.

But just three days before he was supposed to fly, the travel agent told him that his hotel coupon - which he had purchased from group-buying website Deal.com.sg - could not be redeemed.

Complaints from consumers about being unable to redeem their coupons as advertised are a growing concern. Last year, the Consumers Association of Singapore (Case) received 32 complaints from customers of three popular group-buying sites: Groupon.sg, Deal.com.sg and BigDeal.sg. The previous year, it had received none.

Some of the common complaints are: customers not being able to make appointments for the services they paid for, and getting a different product or service to that advertised.


COMPLAINTS

• Last year, the Consumers Association of Singapore (Case) received 32 complaints from customers of three popular group-buying sites - Groupon.sg, Deal.com.sg and BigDeal.sg. The previous year, it had received none. 
• The common complaints include customers not being able to make appointments for the services that they paid for, and getting a different product or service to that advertised.

Recourse for consumers
WHAT should one do when a seemingly good coupon deal turns into a dud?

Such deals usually involve consumers buying coupons on websites which are redeemed by businesses providing a particular product or service.

Lawyer Suresh Divyanathan, the head of law firm Oon & Bazul's commercial arbitration practice group, said that usually in such cases, the contract made is between the consumer and the website, and not the merchant.

However, he said there may be scope under the Contracts (Rights of Third Parties) Act to seek redress from the merchant who offered the deal.

He explained: 'If a website and a merchant make a contract to provide a product or service to a consumer, the consumer can hold the merchant liable.'

He added, though, that the merchant is not obliged to give a full refund.

Consumers can approach the Consumers Association of Singapore (Case) for help in negotiating with the businesses.

Mr Seah Seng Choon, executive director of Case, said: 'If the business engages in unfair practice, the consumer can take it to task or Case will be able to take appropriate actions... under the Consumer Protection (Fair Trading) Act.'