As more and more people take part in online group buying activities, disputes and even fraud are beginning to emerge. Industry insiders say authorities need to impose rules to regulate the market.

Every day, millions of netizens comb through hundreds of group buying websites for decent discounts like this one. This sushi restaurant is offering a 65 percent discount, saving more than 400 yuan.

While online group purchasing can save you a lot money, it can also cost you a lot. That is if you are not careful enough with whom you trust in cyberspace.

In June, nearly 10,000 people group bought vouchers for a video gaming center in Beijing. Each voucher cost just 43 yuan and can be changed into 333 tokens, much cheaper than the retail price.

However, the gaming center closed before the vouchers expired. The group purchasing website ended up reimbursing the buyers for their losses.

There are also reports of group buying websites vanishing after receiving payments from buyers.

That's why the Ministry of Commerce has come up with a certification system to evaluate a website's ability to deliver a reliable group buying service.

Wang Kaiqian, Dep. Director of China Int'l E-Commerce Center, MOFCOM, said, "We check registered capital, office location and actual operational status."

Wang says the system is not compulsory for group buying websites. But it should at least act as an aid for consumers.

Wang Kaiqian said, "This third-party certification system will help buyers understand better about the company providing the service and make it easier to pick out fraudulent sites."

Major group buying websites welcome the move.

Shen Boyang, GM of Nuomi.com, said, "We are working closely with the E-commerce center and we hope this system will benefit the entire industry."

It's reported that industry regulators are drafting rules to reduce the number of group buying frauds. But before that happens, consumers have to rely on their own discretion when group buying things online.

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