According to George Gepsen, an Attorney General for Connecticut, Groupon might be violating a Connecticut law regarding its daily deal coupons.
Last Thursday, Jepsen revealed that he has been asking major daily deals company Groupon for more information regarding how its coupons work. The reason for his inquiry was because of the expiration dates that are enforced on some of the coupons that are sold in Connecticut.
Jepsen added that what the company offers as coupons are very similar to, and can be considered as, gift certificates. Since Connecticut has a law stating that gift certificates should not be sold with an expiration date, it would look like Groupon might be violating this particular law.
To clear this concern, Jepsen has written Groupon CEO Andrew Mason to ask for some more information, particularly about the terms in which the company’s coupons are sold to customers and the terms in which these coupons are redeemed by consumers. Other inquiries from Jepsen include how much profit the coupon sales generate within the state of Connecticut and how often expiration dates are enforced on the sale of services and goods at a discounted price.
Despite this, Jepsen added that he is not prejudging Groupon, nor has he reached any conclusion about the company’s operations. He added that Groupon has been asked to provide the necessary information by the first few weeks of August. The office of the Attorney General is looking forward to the company’s cooperation in clearing this issue. Eliminating this concern would also help Groupon merchants and consumers better understand how their business works.
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