ACCC takes action on Scoopon with “misleading and deceptive conduct” allegations

Posted by AFN Staff Writers on 8th July 2013

The ACCC has commenced Federal Court proceedings over allegations that Scoopon, one of Australia’s largest online group buying sites, misled both consumers and businesses.

The ACCC is alleging that Scoopon misrepresented to businesses the cost and risk levels involved in running a Scoopon deal and, specifically, that Scoopon had no reasonable grounds to claim to businesses that between 20 and 30 percent of vouchers would not be redeemed.

Additionally, the ACCC alleges that consumers were misled regarding their ability to redeem vouchers, their refund rights, and the price of goods advertised in relation to some of Scoopon’s deals.

“Businesses must have reasonable grounds when making representations to consumers and to other businesses. The ACCC is working to ensure that consumers making purchases online are not misled and that online traders take adequate steps to meet their obligations under the Australian Consumer Law,” ACCC Chairman Rod Sims said.

According to another spokesperson for the ACCC, “The ACCC and other Australian Consumer Law (ACL) regulators have received a significant number of complaints since the group buying industry emerged in Australia in 2010.”

The ACCC is seeking declarations, injunctions, community service orders, pecuniary penalties and costs. The matter is listed for a scheduling conference on 25 July 2013.


ACCC takes Scoopon to court