The Australian Direct Marketing Association (ADMA) and the Australian Interactive Media Industry Association (AIMIA) have jointly launched a group buying code of conduct for Australian websites.
The code has been developed on a voluntary basis, with founding signatories Cudo, Groupon, Jump On It, LivingSocial, Ouffer, Spreets, OurDeal and Scoopon.
The code includes a complaint-handling process which will be managed by the ADMA Code Authority. It also promotes compliance with relevant laws, including those relating to privacy.
The industry is now focused on incorporating the code of conduct into the existing ADMA Code of Practise.
AIMIA chief executive John Butterworth said: “Australian consumers are clearly enthusiastic about group buying deals. As a comparatively new industry it's essential that we move as quickly as possible to implement measures that make group buying a rewarding and successful experience for consumers, merchants and group buying platforms alike.
“The code has been developed by the industry associations to help establish group buying as a mainstream channel.”
Cudo chief executive Billy Tucker told AdNews: "The group Bbuying industry in Australia has suffered some reputational damage through the conduct of some less than responsible industry players, in fact many Merchants and Customers tell us at Cudo that group buying sometimes resembles the Wild West with shonky group buying startups offering dubious discounts on even more dubious experiences. This has to stop. Group buying now represents a $500 million industry in Australia and supports well over 1,000 employees. This is why at Cudo we felt compelled to act."
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