Groupon launches in Australia to accusation from Cudo boss of ‘bait and switch’ tactics
Group buying behemoth Groupon has today launched in Australia – and immediately been accused by a rival of operating “bait and switch” tactics on consumers by offering what it claims is a non-existent $8 all-you-can-eat macaroons offer.
Groupon has launched in Australia as StarDeals because of its ongoing domain-squatting row with ScoopOn.
And the boss of rival site Cudo has accused Stardeals of misleading advertising after ads for “all you can eat” deals appeared online without, he claims, the deals being available.
“Clicking on the ad for $8 all you can eat Macaroons takes you to a sign-up page, no such offer exists. Deceptive. Yes. Bait and Switch. I think so.
“Unless I am missing something, this type of Bait and Switch advertising is way out of line and threatens to damage the market as a whole. One thing is for sure, Cudo will never resort to these desperate tactics.”
The ad is today also appearing on various sites as a banner and as a medium rectangle.
The accusation from Tucker comes at a damaging time for Stardeals, with parent company Groupon this week dealing with the fallout from a similar furore in the US. It was forced to cancel an offer for $20 off $40 worth of Valentine’s Day flowers after it emerged that customers were taken to a separate part of the site where flowers were higher than the standard price, effectively meaning there was little real discount.
And over the weekend Groupon also pulled a series of ads that first aired in the Super Bowl after they were accused of belittling the aims of campaigners on such issues as Tibet and deforestation.
Stardeals / Groupon did not have an immediate response to Tucker’s accusations. But in a press release announcing its launch in Sydney and Melbourne, Groupon president Rob Solomon said: “Stardeals will leverage the best practices Groupon has pioneered in more than 40 countries around the globe to change the face of local commerce.”
Today sees Sydneysiders offered discount dining in Manly.
Group buying sites operate by persuading business owners to offer products or services at a steep discount in exchange for the large volume of customers they can bring.
The explosion of interest in the sector has led to a series of increasingly bad temepred exchanges betweem bosses of the rival sites with the boss of Living Social and Jump On It and the CEO of Spreets both taking to guest posts on Mumbrella to swap claims with Cudo over which is the number one site.
Stardeals is being headed by Alexander Podeanu.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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From Groupon’s new Sydney site (http://www.stardeals.com.au/deals/sydney)
“In 1802 man created light in a bulb. In 1969 man first walked on the moon. In 2011, after sweeping the world in just two years, Groupon Inc. launches in Sydney with all trumpets blaring. To celebrate this miraculous achievement,…”
Give me a fucking break.
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Before I read the article I saw the $8 all you can eat macaroons and immediately went on a wild goose chase to find this deal. Dammit I should have read the article first!
I hate you groupon/stardeals for misleading my appetite!
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This is the same Cudo that sold Ghermez Cupcakes last year that didn’t exist too?
http://rainbowtatt.com/food/wh.....z-cupcakes
Pot-Kettle-Black.
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re: “Stardeals will leverage the best practices …”
Do these best practises include all the invasive popunder ads that Stardeals AU are running off of dodgy US torrent sites?
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I saw these ad’s on Youtube last week? You sure they didnt launch last week??
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Hi Anon,
The ads are from the US site.
Cheers,
Tim – Mumbrella
Cudo has been up to its own less them impressive tactics bidding heavily on the brand terms for Groupon. Check out my post I did about their bidding tactics recently.
http://jamesnorquay.com/cudo-b.....-keywords/
Sure enough it is probably broad match bidding but really it is a little cheeky.
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I hate to miss out on a good deal – so I went to sign up.
To be a member of stardeals one must be a ‘Mr’ or ‘Mrs’ – way to make me feel like a looser single lady on valentines week groupon!
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Both these guys just seem to come acorss as cowboys and Dodgy. I am sure the idea has merit but if there are claims of bait and switch its only going to damage their business.
It feel a little like “time share holidays” to me… all good on the suface… but what about the terms and conditions.
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most of the big daily deals guys have been doing this sort of thing for a while.
HAve ou seen the livingsocial ads? Theyre not ALWAYS selling cupcakes!!!
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Does anyone else find it a bit strange that these deal sites are generating tens of millions of dollars; but their communication strategies sound like they have been written by a bunch of 5 year olds.
“Miss! Stardeals stole my macaroon”
I get that they are obviously fighting for share, but their petty ‘mine is bigger than yours’ and ‘you’re not playing fair’ makes the industry look like a bunch of shysters.
Personally, I’ll be steering well clear.
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@Miss – I know! I saw that too, I was so outraged that I wanted to write them a nasty, sarcastic note about it but then kinda forgot… 🙁
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Gasp…who would have guessed it would be dodgy…I see banner/ads like this all the time and never believe it.
Groupon in Australia = FAIL
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Tucker is one to talk. Cudo and his competitors are all deploying the same tactics in SEM. Search for Sydney restaurant deals on Google and you’ll get:
Sydney Restaurant Deals
Great Value, Save Up To 90% Off
The Best Restaurants In Sydney!
http://www.cudo.com.au/SydneyDaily
To use his own words:
Clicking on any of these ad takes you to a sign-up page, no such offer exists. Deceptive. Yes. Bait and Switch. I think so.
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sick of the facial/hair/waxing deals everyday. Groupon and competitors will fail in Australia, they market is way too small. They need more innovative in demand services
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@James common practice unfortunately. If Groupon really cared they could take that up with Google and actually enforce their trademark on bidding for the trademarked terms, eg: their company name.
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