The Australian Competition and Consumer Commission has launched proceedings against group buying website Scoopon alleging it engaged in misleading and deceptive conduct and also made false and misleading representations to both businesses and consumers.
The ACCC announced this morning that it would take action against Scoopon, which is one of Australia’s largest online group buying sites, alleging that it misled consumers regarding their ability to redeem vouchers, their refund rights, and the price of goods advertised on the website.
“The ACCC has made online competition and consumer issues a compliance and enforcement priority. Ensuring that the digital revolution delivers competition benefits to consumers and small businesses is a focus for the ACCC,” said Rod Sims ACCC chairman.
“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.”
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The ACCC said will be seek declarations, injunctions, community service orders, pecuniary penalties and costs against Scoopon.
Scoopon said in a statement they would review the ACCC allegations.
“We will review the ACCC allegations made and work to resolve the issues raised,” the company said.
“At Scoopon, our number one goal is to connect happy customers with happy business owners so people can enjoy the best of what these businesses have on offer.
“We have also recognised the need to continuously improve our deal selection and customer service policies.”
The matter has been filed in the Federal Court in Brisbane, and is listed for a 25 July.
In February the Association of Data Driven Marketing and Advertising announced a new code of practice which Scoopon is a signatory to.