March 23rd, 2012
Groupon Given Three Months to Improve its Operations
A UK regulator has told the voucher company Groupon that it has three months to improve its operational practices after the discovery of “widespread” examples or breaches in the consumer protection rules.
The discovery was made following an investigation by the Office of Fair Trading, which raised concerns over “refunds, pricing, unfair terms, advertising and the diligence of its interactions with merchants”
Concerns have been raised that some of the advertised discounts have been exaggerated and that time limits to take up the services are not made clear.
Groupon is the trading name for MyCityDeal Ltd and it operates by negotiating with businesses to get good deals for its customers. Once these deals are in place, an email is sent out to all Groupon customers outlining the deals available each day. If enough people register for a specific offer, they can present a voucher to the relevant business and receive the advertised discount.
However, it has been reported by the Advertising Standards Authority that in some cases, it could find no proof that the discounts and deals were available to the customers.
Groupon has agreed to change its procedures to ensure a more honest relationship with its customers and to make sure that adverts clearly indicate any limitations.< Back to Blog