16/03/2012

Groupon Issued Deadline For Changes

Voucher company Groupon has been set a three-month deadline to improve its operations by a UK regulator.

The Office of Fair Trading (OFT) carried out an investigation, which found “widespread” examples of breaches of protection rules.

The OFT specified concerns over “pricing, advertising, refunds, unfair items, and the diligence of its interactions with merchants”.

Groupon is the trading name of MyCityDeal Ltd. They negotiate discounts with businesses, which it then emails to its customers outlining the various deals on offer each day.

If enough of people then sign up to the offer, they can then present a voucher to the trader and benefit from the advertised discount.

Concerns however have been raised about the exaggeration of some of the discounts offered and the time limit attached to taking up the offer.

In one case, the Advertising Standards Authority said it had found that there was no evidence that advertised deals were available. This included deals claiming that consumers could buy a bouquet of flowers for £8 and that they could take advantage of an "all you can eat in London for £3" offer.

Groupon has agreed to implement changes to ensure customers trust in the service.

The OFT warned Groupon that it would monitor complaints closely and that any breach of the undertakings could lead to court enforcement orders.

(H)




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