Groupon: A half century to be ashamed of

As reported over at The Guardian this morning, discount website Groupon has been found to be in breach of the Advertising Standards Authority's (ASA) advertising code an incredible 50 times in just one year.

The latest breach was for an Ocado 'one year midweek delivery pass plus £40 of groceries'. Put up for £39, it is now being said that the product never even existed. The offer claimed to save consumers £110, largely due to the pass originally costing £69.99. However, on July 28 when the deal was launched, the pass in fact cost £14.99 – the £69.99 pass was for a different service.

Just days ago Groupon was reported by the ASA to the Office of Fair Trading (OFT) for allegedly running unfair promotions and exaggerating the deals it offered. It is the first ASA referal to the OFT since Ryanair back in 2008. It has since emerged that the OFT had already been investigating the site for almost six months.

The ASA referral lists three key areas of concern covering unclear terms and conditions, failing to provide evidence the offers are actually available and exaggerating claims made in its offers. The most recent breaches will only add fuel to the fire and leave Groupon in a difficult situation. 

It has also been reported as struggling on the stock market since turning down a $6 billion buy out offer from Google, leading to suggestions that the Groupon bubble has now burst.

All we can say is if you’re using any offer or voucher website, be very careful to read the terms and conditions and check the facts of the offer carefully before committing.