Class action suits charged the company deceived users by creating "sense of urgency"
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Are you a Groupon user? If so, you may have some money coming your way, as a class-action lawsuit was filed against the company for not disclosing the certificate's deal restrictions.
Groupon will be paying a sum of $8.5 million to consumers who were not able to cash in on Groupon deals, due to deal expiration dates not being listed on the certificate.
The lawsuit is made up of 17 different cases that have been merged into one, and brought to the California courts. Groupon decided to settle, but was excused from having to admit any wrongdoing.
Initially, the company said it didn't understand what all of the fuss was about, as it said its policy allows for customers to redeem unused certificates for the same amount they've purchased it for, regardless of the date.
Sense of urgency
Obviously the plaintiffs saw it another way, and said that Groupon not clearly listing its guidelines was deceptive and allowed customers to believe certificates were more time-sensitive than they really were.
The plaintiffs also said not plainly alerting the consumer to Groupon's restrictions "effectively creates a sense of urgency. Consumers therefore feel pressured and are rushed into buying the gift certificates and unwittingly become subject to the onerous sales conditions imposed," said the suit.
Each of the 17 named defendants will receive an amount of $500 each, while the rest of the settlement will be split between anyone who purchased a Groupon certificate between Nov. 1, 2008 and Dec. 1, 2001. Consumers have until July 6 to file their reimbursement claims. You can download a claim form at https://grouponvouchersettlement.com/SettlementVoucherClaimForm.aspx
In addition to the financial settlement, the Chicago-based company will also provide vouchers that can be used towards the customer's initial Groupon purchase. If the voucher isn't accepted by business owners, consumers can file a second claim for a personal check to be mailed.
