Scoopon fined $1m after Federal Court rules company misled consumers

Group buying website Scoopon has been handed a record fine of $1 million for making false or misleading representations to both consumers and business.

The Federal Court this afternoon handed down the fine after the Australian Consumer and Competition Commission (ACCC) launched a court action against the website alleging it had engaged in misleading and deceptive conduct in July.

The Federal Court found Scoopon contravened the Australian Consumer Law by making false or misleading representations to consumers about their refund rights and the price of goods advertised, and for telling businesses there was no cost or risk involved in running a deal with Scoopon and that 30 per cent of vouchers sold would not be redeemed, when this was not the case.

“The ACCC acknowledges Scoopon’s cooperation in resolving the matter by consent, which has enabled a more timely outcome to be reached,” said chairman Rod Sims in a statement.