The Hong Kong's Consumer Council urged caution in making online group purchases on Friday, saying complaints about this form of shopping are rising.
Group-buying websites sell vouchers and offer bargains, allowing consumers to sign up for deals that are only activated when a minimum number of sign-ups is reached within a specific time period. Prepayment by credit card or bank transfer is required even before the deal is sealed.
The council warned shoppers can be left vulnerable if the websites fail to pay the merchant and run out of business.
Most of these websites do not offer a warranty or money-back guarantee. Some impose exemption clauses specifying the operators will accept no responsibility for loss caused by inaccurate information or errors.
Consumers should ensure the transaction data is encrypted when making online group purchases and choose a payment method that does not require disclosure of the credit-card information.
The council received 11 complaints on the issue in the first quarter this year, two last year and one in 2009.
Weekly review
Group-buying websites sell vouchers and offer bargains, allowing consumers to sign up for deals that are only activated when a minimum number of sign-ups is reached within a specific time period. Prepayment by credit card or bank transfer is required even before the deal is sealed.
The council warned shoppers can be left vulnerable if the websites fail to pay the merchant and run out of business.
Most of these websites do not offer a warranty or money-back guarantee. Some impose exemption clauses specifying the operators will accept no responsibility for loss caused by inaccurate information or errors.
Consumers should ensure the transaction data is encrypted when making online group purchases and choose a payment method that does not require disclosure of the credit-card information.
The council received 11 complaints on the issue in the first quarter this year, two last year and one in 2009.
Weekly review
