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.
Last update : November 12, 2020
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.