A website that promises to save older Australians significant sums of money has been unmasked as a scam site by Australia’s leading consumer advocacy group, CHOICE.
In a special report, CHOICE says after investigators paid $19 to join Senior Advantage, the “claim this deal” offers turned out to be nothing more than the online discounts of retailers such as Woolies, Coles and Chemist Warehouse – offers that were already available to everyone, regardless of their age .
Senior Advantage absolves itself of any responsibility for third-party offers – at the same time that it bases its business on such offers, CHOICE says.
According to the Australian Competition and Consumer Commission (ACCC), many of the tactics that Senior Advantage use run counter to the Australian Consumer Law.
“Should Australian consumers be concerned when a company with a website based in Lithuania starts popping up regularly on social media and promises to save older Australians “up to 70% off at Woolworths, Coles and many other stores” – all for a $19-a-year subscription?” CHOICE said.
“The short answer appears to be yes, as several members of the CHOICE Community have pointed out.
It said the company in question, Senior Advantage, also offers a budgeting tool, a personalised meal plan, and a digital discount book that promises seniors savings at your “favorite shops” and “great restaurants”.
‘It’s been reported that people who regularly use deals and discounts from Senior Advantage can save over $1,500 each year,’ the company claims in an advertorial. (The ‘company’ also shows up on the internet as Seniors Advantage.)
The ‘claim this deal’ link on the Senior Advantage website went straight to the discount page of Woolies’ website – which doesn’t require a Senior Advantage membership.
Who’s behind Senior Advantage?
The spelling of “favorite” is in US English and prices are shown in US dollars, but it’s hard to know who’s really behind the business, CHOICE says.
Aside from Coles and Woolies, the website also promotes deals from Bunnings, Kmart, Amazon, Aldi, IGA, Liquorland and Chemist Warehouse.
And in one advertorial posted, Senior Advantage claimed that “recent studies” show that 78% of Australians have never taken advantage of “amazing discounts”, including 70% off at “thousands of stores”.
“It’s a compelling pitch. But there seems to be some funny business going on with Senior Advantage, which is operated by a Lithuania-based company called JSC “Inulti” and describes itself as an ‘internet innovation and technology company’,” CHOICE said.
Aside from Coles and Woolies, the website also promotes deals from Bunnings, Kmart, Amazon, Aldi, IGA, Liquorland and Chemist Warehouse
On the special-offer page set up to entice people to join, announcements naming the latest member to sign up (first name only) pop up every few seconds, giving the impression that hundreds of people are signing up every day.
As with Woolies, the Senior Advantage Coles deals were already available on the Coles website.
Senior Advantage not liable
CHOICE says Senior Advantage also has some troubling terms and conditions, such as the right to “discontinue or modify, or temporarily or permanently terminate, the Senior Advantage’s Web Site (or any part thereof) with or without notifying you”.
“The real kicker in the disclaimer language is that, while Senior Advantage promises to find you deals on offer by third parties, it makes abundantly clear that it assumes no responsibility for the legitimacy of any third-party offering,” CHOICE says.
“We are not responsible for the quality, accuracy, timeliness, reliability, or any other aspect of any product or service offered or provided by a third party,” the document reads.
And if you have a dispute with the business, it will have to be addressed through the Lithuanian legal system.
Give me a refund – now
One consumer who briefly joined Senior Advantage and recently got in touch with CHOICE was not impressed.
“They indicated on the promo and ad that you could save tons on food products from Woolies and other stores, as well as other ‘great savings’,” the consumer told CHOICE.
“When I bought the membership, it was not so. I get specials sent to me from stores I buy from for free, and Senior Advantage’s claims seem to be totally unfounded.”
Her refund was promptly processed.
Another consumer to contact CHOICE had a similar experience, and also had her money refunded.
“I just Googled some of the things I might use and found them to have the same discount as these guys,” they said. “There was no overall discount for being a member,” she told the advocacy group.
CHOICE joins Senior Advantage
“When we decided to find out for ourselves what Senior Advantage is all about, the upsell began immediately,” CHOICE said.
“As soon as we joined, we were defaulted to the three-year $39 plan and had to deselect it to choose the one-year $19 plan.
“Then we were hit with a lifetime membership offer for $49, down from $499, and told “this offer is only available on this page and you will never see it again”.”
A fictional CEO?
“We skipped that and were treated to a warm webpage greeting by president and CEO Richard Williams, a person who doesn’t seem to exist – at least not in affiliation with Senior Advantage – outside the webpage. (A thorough Google search came up with nothing.) A reverse image search revealed that the CEO image is a stock photo.”
“As with all the retailers we checked, the Senior Advantage Chemist Warehouse offers were already available at Chemist Warehouse – there were no special Senior Advantage deals.”
Deals on offer – but not from Senior Advantage
“When we clicked one of the Senior Advantage Woolworths links to “claim this deal”, we were taken to Woolies’ half-price specials page, with offers for items such as cheap solid air fresheners and cosmetic brushes. To be blunt, it looked like all the stuff that Woolies couldn’t sell, which we’d paid $19 to view. Meanwhile, Woolworths told us it has no connection to Senior Advantage,” CHOICE said.
“When we clicked the Coles link on Senior Advantage to “claim this deal”, we were taken to Coles’ half-price specials page, whose lineup was similar to the Woolies offerings. The Coles Group (which includes Liquorland) also told us it had no connection to Senior Advantage.
“In short, the “claim this deal” links on the Senior Advantage website merely take you to the discount pages of the respective retailers’ websites. Crucially, these pages were already there to begin with – and freely available to any shopper with an internet connection.”
“Senior Advantage says it’s there to help seniors. Yet there were no questions about age during the sign-up process, and none of the discounted products on the various retailers’ websites seemed particularly suitable for older people. The other offerings on the website were also sketchy.
“We contacted Senior Advantage for an explanation of the offers on its website, but didn’t receive a response.”
CHOICE asked the ACCC whether the tactics employed by Senior Advantage amounted to a violation of Australian Consumer Law.
It also asked whether it was legal for a company doing business in Australia to restrict any dispute resolution to the Lithuanian legal system.
An ACCC spokesperson told CHOICE that international companies conducting business in Australia were required to comply with the Australian Consumer Law.
“An ACCC spokesperson told us there were a number of potential violations: “If a business supplies a paid membership service that offers certain benefits to consumers but fails to adequately disclose that these benefits are already available to consumers without a membership, that may be misleading or deceptive conduct in breach of the Australian Consumer Law (ACL),” the spokesperson said.
“The ACCC also told us that defaulting consumers to a more expensive membership option than was initially advertised is illegal.”
Our jurisdiction, our laws
As for having to settle any disputes in Lithuania, “the issue of jurisdiction can be complex,” the spokesperson said.
“However, international companies conducting business in Australia are required to comply with the ACL.
“Businesses cannot make misleading representations to consumers or rely on unfair contract terms to limit their obligations under the ACL.
“This may include attempts to restrict any dispute resolution under a contract to the legal system of a foreign country. Consumers that have a claim under the ACL can pursue that claim through the Australian legal system.”
