Online group purchase is becoming more and more popular in Hong Kong. Consumers often find group purchase a convenient way to shop, and they can also enjoy the big bargain offers. However, they are advised to be aware of the potential risks when making online group purchase in order to avoid unnecessary monetary loss.
The Consumer Council received 2,259 complaints on group purchase in the first seven months of this year, an increase of 29 times when compared to 79 cases in the same period of last year.
Consumers are sometimes offered big discounts by some companies through advertisements posted on their group purchase websites. When consumers try to realize the discount vouchers they get from the websites, they may face high pressure tactics of sales, forcing them to buy extra services. Such sales tactics are very likely to be offences covered by provisions in the newly enacted Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance 2012 in using aggressive practices in trading.
Some group purchase websites also sell medical appliances or services without providing detailed information about the products or the services. Consumers may not fully understand their own personal needs, or they may not have pondered adequately the benefits and risks of the medical treatment before they decide to make the purchase.
To remind consumers on the potential risks when making online group purchases, the August issue of CHOICE reported some typical complaint cases for consumers' reference.
Miss Chan bought a package for breast care treatment service from a group purchase website. When she went to the beauty centre for treatment, she was persuaded by the staff to buy additional treatments. After she agreed to make further purchases, she was again induced by the staff to make more purchases every time she came for the treatment. She was also threatened of getting breast cancer by the staff if she did not deal with her breast problem. Unable to decline the persuasion for buying extra services, Miss Chan soon found that she had signed for bills totaling HK$ 122,460.
In another case, Mr. Lee bought some dining vouchers of a restaurant from a large online portal and then got a notification from the group purchase company that the company was undergoing business restructure. Mr. Lee was assured that he could continue to use the vouchers but he was refused by the restaurant when he tried to make a reservation, as the restaurant indicated it had not received any fees from the group purchase company for providing the service. Mr. Lee then lodged a complaint to both the online portal and the group purchase company, but he got no reply. He then took the case to the Consumer Council and eventually he got a full refund.
Miss Cheung bought a coupon for beauty service which included an injection treatment for HK$8,800 through an online group purchase company. She then enquired about the details of the injection service and whether the treatment would be handled by a properly trained doctor, but the company refused to provide information about the doctor and relevant information. She later found out that the doctor responsible for the treatment should have gone through relevant training and be officially certified, or the treatment might cause serious side effects. Miss Cheung was dissatisfied with the beauty centre and the group purchase company for their failure to provide relevant information for the treatment and their lack of safety alert to consumers of potential risks. She therefore asked for cancellation of the service and demanded for a full refund, but the request was rejected. She then took the case to the Council and the company agreed to offer her full refund.
Consumers are advised to take heed of the following when making online group purchases:
- There may be different terms and conditions for the purchase of different online products and services; some group discount offers impose surcharges; and normally once the order is confirmed, there may not be any alternation (e.g. in terms of size and colour) for the products purchased.
- Online group purchases involve prepayment. Consumers are advised not to spend a large sum of money for such purchases, as it would be difficult to get the money back if the group purchase company runs out of business.
- Be wary of the exaggerated advertisements posted on group purchase websites. When a product is found to deviate substantially from what is described, both the group purchase company and the supplier may deny their responsibilities for the discrepancy, leaving the consumers in a helpless situation.
- Group purchase websites offer discounts, but they will not be responsible for the quality of the products and services. Consumers usually find it difficult to claim for compensation in case there is a problem in the product quality.
- Credit cards are commonly used for online group purchase. Consumers should be aware of the risks for releasing personal credit card information to group purchase companies.
- Some group purchase websites are registered overseas. Consumers may have difficulties to get in touch with them in case of disputes.
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