Groupon Settles Class Action for $8.5M

Groupon Inc. will pay $8.5 million to settle a class-action lawsuit that claims the expiration dates on the daily deal coupons it offers on its website are illegal.

The settlement resolves claims made in 17 lawsuits against the coupon king that were consolidated in federal court in San Diego. The consumer fraud lawsuits claim that Groupon and various retailers it works with violate state and federal consumer protection laws with improper expiration dates and other provisions for the coupons, such as the requirement that they must be used in a single transaction, according to Bloomberg News.

“Groupon effectively creates a sense of urgency among consumers to quickly purchase ‘groupon’ gift certificates by offering ‘daily deals’ for a short amount of time,” according to the class action. “Consumers therefore feel pressured and are rushed into buying the gift certificates and unwittingly become subject to the onerous sales conditions.”

In agreeing to the settlement, Groupon disputes the claims and denies any wrongdoing.

Under the terms, consumers who purchased vouchers from Groupon before December 1, 2011, can either obtain a refund or redeem them past their expiration date.

The company also agreed for the next three years to refrain from selling more than 10 percent of its coupons with an expiration date of less than 30 days after issuance.

If you or a loved one has been wronged by consumer fraud, you may be entitled to compensation. Contact Sokolove Law for a free legal consultation.