The Better Business Bureau has seen a spike in complaints in the last year with daily deal promotions (also known as group buying) ending up with no orders delivered, services not rendered, and a lack of communication between the vendor and its customers.
"Group buying websites are popular ways for businesses to offer daily deals and special promotions," says Better Business Bureau serving Mainland B.C. President and CEO, Danielle Primrose. "What we are seeing is companies not prepared to handle the volume of sales that comes with group buying, and a lack of due diligence on the part of group buying sites about who is selected as a vendor."
Collective buying sites offer products or services at a reduced price on the condition that a minimum number of consumers buy the deal.
Consumers who purchase the special offer are then given a voucher to take to the business to claim their discount or are given a promotional discount to purchase a product.
But that's sometimes when the deal can fizzle out.
Each year, Better Business Bureau receives hundreds of complaints from consumers whose "deal" only led to frustration.
Consumers have reported products going undelivered and in some cases have had very little to no communication with the vendors.
If looking to purchase a deal through a daily deal website, BBB recommends consumers do the following: Check out the business. Thoroughly research the business offering the special. Utilize BBB Business Reviews to see the company's BBB rating and any history of complaints.
- Read the fine print. Make sure you fully understand the terms and conditions that come with the offer.
- Verify the refund policy. Before making a purchase, consumers should know the stipulations for receiving a refund. Make sure to understand both the business refund policy as well as the refund policy of the collective buying site.
- Pay with a credit card. Credit cards offer additional protection in case you do not receive your products or coupon promotion.
To check the reliability of a company and find trustworthy businesses, visit mbc.bbb.org.
