If you’ve purchased a Groupon since the company started in 2008, chances are you’ll be receiving an email soon about a class-action lawsuit over the expiration dates found on the daily deals.
Some 17 Groupon subscribers filed individual lawsuits over the past few years over the expiration dates and the company settled the case last month for $8.5 million. Groupon never admitted fault or any wrongdoing over the expiration dates, which violated recent gift-card regulations. Gift cards and certificates cannot expire in less than five years. From a CNN Money article:
On the customer side, the settlement class includes anyone in the U.S. who bought a Groupon deal or received one as a gift from November 1, 2008, through December 1, 2011.
But what those customers will actually get remains pretty murky. The settlement’s core terms appear to almost exactly mirror Groupon’s own current policy on expired coupons.
Groupons have two separate values: the actual amount paid (like $20 for a voucher promising $50 worth of services at a local spa) and the promotional amount (that’s the $50).
Many have wondered whether Groupon’s model is sustainable in the long-term. The company’s IPO stumbled out of the gate last year because of these concerns. Groupon has made moves to enhance its offerings, such as adding a loyalty program and purchasing two companies to increase its mobile capabilities.
Click here to read more from CNN Money.
