Scoopon Is Being Sued By The ACCC [Updated]

Maybe they can get a good voucher deal on legal representation?

The Australian Competition and Consumer Commission has commenced legal proceedings against group-buying site Scoopon in the Federal Court of Australia, accusing the site of misleading consumers and businesses with its service.

The ACCC will allege that Scoopon misled consumers in regards to the refundability of vouchers, while also alleging that businesses were misled over claims that up to 30 per cent of vouchers would actually be redeemed.

Here’s the allegations from an ACCC statement:

The ACCC alleges that Scoopon misled consumers regarding their ability to redeem vouchers, their refund rights, and the price of goods advertised in relation to some of its deals. The ACCC also alleges that Scoopon represented to businesses that there was no cost or risk involved in running a deal with Scoopon, when a fee was payable to Scoopon.



Further, it is alleged that Scoopon misled businesses by claiming that between 20 per cent and 30 per cent of vouchers would not be redeemed when there was no reasonable basis for this representation.

This case will surely have a more than a few interesting tidbits about the way Scoopon operates in Australia. We’ll wait and see what sordid secrets may or may not come out.

Update:

Scoopon have responded to the allegations from the ACCC. Here’s their response in full: