Groupola company hit by OFT investigation
The Office of Fair Trading (OFT) says it has taken action against Dudley-based Marcko Media after the company “heavily promoted” the sale of an Apple iPhone model, despite only having eight handsets available. Markco Media is the company behind group buying website Groupola.
Groupola is a 'group buying' website, whereby customers receive goods at discount prices if a group of eight or more agree to the purchase price.
An investigation by the OFT found that Markco Media used 'bait pricing' to promote a sale of iPhone 4s at £99 (the normal retail price was £499) to entice consumers to join Groupola and sign up to receive daily email alerts from the company.
Following extensive promotion of the iPhone sale, almost 15,000 people signed-up and registered with Groupola for the sale.
Customers were not informed that there were only eight handsets available and so almost everybody attempting to buy an iPhone 4 at £99 was “left disappointed after incurring time and effort providing personal details to sign up to Groupola”, said the OFT.
Heather Clayton, senior director of the OFT's consumer group, said: “Competitive markets, and economic growth, need fair and transparent promotional activity with consumers able to shop around and trust advertising of prices - this case demonstrates that, where necessary, we will take enforcement action.”
