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Australia - Scoopon to pay $1 million for misleading both businesses and consumers

The Federal Court has ordered that Scoopon Pty Ltd (Scoopon) pay penalties of $1 million for making false or misleading representations to both businesses and consumers.
The Court declared that Scoopon contravened the Australian Consumer Law (ACL) by making false or misleading representations to:

  • consumers about their refund rights, and the price of goods advertised in relation to some of its deals;
  • businesses that there was no cost or risk involved in running a deal with Scoopon, when this was not the case; and
  • a business that 30 per cent of vouchers that would be sold would not be redeemed, when there was no reasonable basis for this representation.

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