Buyers club
A buyers club or buying club is a club organized to pool members' collective buying power, enabling them to make purchases at lower prices than are generally available, or to purchase goods that might be difficult to obtain independently.
AIDS epidemic
In the early days of the HIV/AIDS epidemic, buyers clubs became prominent as a means of obtaining unapproved medications and information about how to help treat HIV and opportunistic infections.[1] An example of this was drawn to wider prominence with the 2013 film release Dallas Buyers Club.
Hepatitis C
In response to the high price of modern direct-acting antiviral (DAA) treatments for hepatitis C, the FixHepC buyers club was set up by James Freeman and his father John Freeman [2] in Australia in 2015 in order to help individual patients obtain legal access to generic versions of sofosbuvir, daclatasvir, and ledipasvir. At EASL International Liver Congress,[3] Dr. Freeman presented data[4] showing that generic versions are as effective as branded products.
Scams
In the United States, the Federal Trade Commission (FTC) found that fraudulent or misleading buyers clubs were one of the top three types of consumer fraud in 2011, affecting about 0.6% of the US population every year.[5]
These memberships are typically sold in the course of selling another product, either with a free trial membership being a condition of making the purchase at the offered price or with a free trial membership being included as a "thank you" gift along with the initial purchase. The customer may not understand what was purchased or may believe that they have not authorized payment for the membership, and yet the credit card used for the initial purchase is billed for the buyer's club membership at the end of the free trial.[6] According to Iowa Attorney General Tom Miller, "Consumers often tell us they don't recall ever having spoken to the companies, and they don't understand how they can be charged when they have not given the company their credit card number."[7]
Sometimes, a wide variety of products are promised at a discount, and then once the fee is paid the products are unavailable or not as advertised.[8] This is particularly true for travel-related buying clubs.[9]
References
- ↑ Howard Lune (2007). Urban Action Networks: HIV/AIDS and Community Organizing in New York City. Rowman & Littlefield. pp. 53–54. ISBN 9780742540842. Retrieved 26 July 2014.
- ↑ Richard Woolveridge (November 30, 2015), "Real life Dallas Buyers Club operation helps hepatitis C patients with free drugs", The Sydney Morning Herald
- ↑ Freeman, James A. D.; Hill, Andrew (1 July 2016). "The use of generic medications for hepatitis C". Liver Int. 36 (7): 929–932. doi:10.1111/liv.13157 – via Wiley Online Library.
- ↑ http://ilc-congress.eu/low-cost-generic-direct-acting-antiviral-treatment-hepatitis-c-equivalent-branded-formulations/
- ↑ Federal Trade Commission, "FTC Survey for 2011 Shows an Estimated 25.6 Million Americans Fell Victim to Fraud"
- ↑ Federal Trade Commission, Consumer Fraud in the United States, 2011
- ↑ "Miller: Buying Clubs Ordered to Pay to Settle Deception Charges", November 13, 2001 (press release)
- ↑ Fraud Squad TV, Buyers Clubs Fraud
- ↑ National Consumers League, "Time for Vacation – Avoid Travel Scams"
Further reading
- Lesley Clark (February 22, 1999), "Travel Company Is An Agent Of Controversy", Orlando Sentinel
- "Web Site Nets Airline Gripes", The Los Angeles Times, May 16, 1999
- Refunds coming to 2,600 Iowans after agreement reached, Des Moines, Iowa: KCCI News, April 6, 2015
- Matthew Patane (April 6, 2015), "AG: Florida company to refund 2,600 Iowans", Des Moines Register
- Florida Buying Club Company Agrees to Refunds and Stop Marketing to Iowa Consumers, Iowa Attorney General, April 2015
- McDowell, Edwin (October 24, 1999), "The Traveler, Redefined as Travel Agent", The New York Times