In the EXISTING SYSTEM, Mobile Location-Based Services (MLBSs) have a lot of limitations and raise many concerns, especially about system security and user’s location & identity privacy. In the PROPOSED SYSTEM, we develop a security and privacy aware location-based rewarding protocol for the LocaWard system. This protocol includes, Identity Initiation, Token Distribution and Token Redemption. In Identity initiation phase, Trusted Third Party (TTP) issues certificate in each Mobile User (MU) for authentication purpose. In Token distribution phase, Token Distributor (TD) will distribute location-based tokens based on MU request. TD also generates corresponding audition information and stores it in the Central Controller (CC) for future token verification. In Token redemption phase, Token Collector (TC) verifies the MU’s token redemptions & reward the MU’s with benefits. In the MODIFICATION part, coupon based product purchase user will give their feedback about the product using their transaction ID of purchase. This feedback is updated only to the corresponding location where purchase is made. OTP based authentication is also accessed for this feedback.