A group purchasing Web site is a site where a merchant sells, with certain conditions, coupons or vouchers. These are valid for a limited period of time and they may be used to purchase goods or services from another merchant, generally at a discount.
Examples of group purchases
The coupon can:
- be exchanged for a specific product or service. For example, you pay $50 for a photo shoot that normally costs $200.
- have a cash value. For example, you pay $20 for a coupon worth $40 at a particular restaurant.
Entering into 2 contracts
When purchasing a discount coupon from a group purchasing site, you are entering into 2 contracts:
- a contract with the merchant operating the group purchasing Web site (covering the purchase of the coupon);
- a contract with the merchant providing the product or service obtained in exchange for the coupon. This merchant must abide by specific rules, where applicable, depending on the service provided.
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