Daily Deals Sites Get New Code of Conduct

Krabi, Thailand

Companies that operate daily deal sites on the Internet have been invited to sign a voluntary code of conduct that has just been unveiled.

The code of conduct, which has been designed to promote, ‘fair, honest and ethical best practice’ is considered to be a first step in improving the reputation of the sector.

The Global Daily Deal Association, a trade association for the daily deal industry, has developed the code with the intention of standardising practices across the industry and enhancing accountability and sustainability. Ultimately, the Association hopes to see the industry’s reputation improve with both merchants and customers.

A negative view of the industry has been fostered in the past due to issues concerning customer privacy, misleading or deceptive claims, and complaints and refunds, and it is these issues that the code of conduct intends to tackle. Those operators that sign up to the code will work with the GDDA to develop practices to improve the industry’s future image.

With this in mind the code sets out to ensure that the product information available to customers gives them enough detail to make an informed decision, that communication between all parties is clear and accurate, that policies and procedures are clearly displayed on the website, and that the provider can effectively handle complaints and refunds.

Association chief executive, Stavros Prodromou, said: ‘The GDDA has spent a great deal of time producing a code of conduct that is suitable and relevant to the industry. The sector has previously been affected by a lack of merchant and consumer confidence. The code is the first step toward improving the sector’s reputation. By signing up to the code of conduct, businesses are making a commitment to the future of this industry; the GDDA and code of conduct are crucial to the sustainability and credibility of the daily deal industry.’

Several well-known names in the daily deals industry have already signed up to the code of conduct.

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  1. Sam Armstrong says:

    Groupon has gotten a lot of bad press lately – the reality is that the model doesn’t necessarily make sense. Why give everyone 50% off? Why not give the top social influencers 90% off and give everyone else 10-20% off? That’s the model behind SocialLadder an iPhone based platform that recently did a soft launch. They’re available in the iTunes app store and going gangbusters…

  2. Abdullah bin abdul jabbar says:

    In general the daily deals model has some major flaws – they give everyone 50% off to try to build word of mouth marketing – but the reality is that you could get so much more if you focused the largest discounts to the biggest social influencers. Check out SocialLadder – an iPhone based platform that recently did a soft-launch. They have a platform that allows local merchants to post offers and target those offers directly to social influencers. This is the new way – the more influential you are, the bigger the discount.


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