Group buying and daily deals

What is group buying?

There are a few group buying websites operating in Australia.  Websites including:

  • Scoopon
  • Spreets
  • deals.com.au
  • Cudo
  • LivingSocial
  • Groupon

These sites, also referred to as ‘daily deals’ or ‘deal of the day’, sell vouchers or coupons for goods and services with big discounts. In some cases, the vouchers are offered on the condition that a minimum number of consumers take up the deal.

How does group buying work?

Many group buying websites work by negotiating deals with local businesses.  These deals promise to promote the products and services, in exchange for discounts to help gain new customers.  Consumers wanting to take up the offer enter their payment details online and a voucher is emailed to them to claim their purchase.

Other daily deals

Other daily deals websites offer discount deals on products (and sometimes services) for a limited time. This includes websites such as:

  • Catch of the Day
  • Shopping Square
  • oo.com.au
  • Deals Direct
  • Crazy Sales

Stocks are limited and items often sell out before the offer ends. These daily deals differ from group buying deals as the customer receives a product or service, rather than a voucher.

Tip for small businesses considering group buying offers

Businesses thinking about offering such deals should consider:

  • the potential demand
  • if the business can deliver the goods and services as advertised and that the terms and conditions of sale are fair
  • obtaining independent financial and legal advice
  • new customers taking up the discount may not come back unless further deals are offered.

When things go wrong

If consumers have trouble redeeming the voucher or unreasonable delays in booking, they should contact the group buying website to seek a refund.  Most of the major group buying and daily deals companies are parties to the industry's code of conduct.  This means they should have a consumer complaints process.

Related information

Updated: 25 Jul 2022

This page has been produced and published by the Consumer Building and Occupational Services Division of the Department of Justice. Although every care has been taken in production, no responsibility is accepted for the accuracy, completeness, or relevance to the user's purpose of the information. Those using it for whatever purpose are advised to verify it with the relevant government department, local government body or other source and to obtain any appropriate professional advice. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon the information and/or reliance on its availability at any time.