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.