Complaints flood in over group discount websites
Group discount websites have become more popular in Hong Kong - but they have also sparked a lot of complaints, says the Consumer Council.
In the first half of this year the watchdog received 2,149 complaints about such sites, in which buyers pay upfront for the promise of cut-price offers on everything from meals to medical treatment. There were just 56 complaints in the first half of last year.
The council said four out of five complaints it received about group-buying portals concerned goods or services that were delivered late or in some cases not at all. About 100 consumers complained about poor service or shoddy products.
The council did not name the companies in its mid-year report, so it is unclear what portion if any stemmed from purchases made through popular local sites such as Groupon, Bee Crazy and Group Buyer.
Council vice-chairman Ambrose Ho Pui-him said it may consider naming sites in future reports if a particular company receives a large number of complaints.
Ho urged people to consider the risks that come with any prepaid purchases, such as those made through the sites.
'Group purchase is a kind of sales promotion tactic which may provide attractive discounts,' Ho said. 'But consumers have to think twice before paying as to whether the traders are able to provide what they promise to deliver.'
The drawbacks became apparent in late March when one group-buying portal, JigoCity, abruptly closed its local branch, leaving hundreds of customers holding pre-purchased dining coupons that they could not redeem.
Meanwhile, the number of sales-practice complaints involving telecommunications firms increased to 367, up 34 per cent from the 274 received last year. The rise was due in part to anger at SmarTone's decision in February to scrap unlimited data plans for smartphone users, only to reinstate the plans.
Complaints by mainland tourists dropped from 847 in the first six months of last year to 695 in the same period this year. Complaints in other areas, such as property sales and recreation or health club memberships, also fell more than 40 per cent.
3,471
The number of complaints made about telecom firms in the first six months of this year, a 6 per cent drop on the same period last year
