Groupon.com, an internet-based company that
provides discounts on products and services, is feared to have
fallen foul of the US’ Credit Card Accountability Responsibility
and Disclosure Act (CARD Act).
It has been reported by a variety of media
outlets that a potential class action lawsuit has been filed
against Groupon, claiming the website issues coupons with illegal
expiration dates. The CARD Act, signed into law in May
2009, prohibits the sale of gift certificates with expiration
dates of less than five years.
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According to the Chicago Sun-Times,
Eli Johnson, from Illinois, Chicago told the court he purchased a
gift certificate to amusement centre WhirlyBall through Groupon
with an “illegally deceptive expiration date” and as such as was
not able to redeem the voucher. WhirlyBall is also listed as a
defendant in the filed lawsuit.
“Groupon’s systematic placement of expiration
dates on its gift certificates is deceptive and harmful to
consumers. Consumers must act quickly to purchase gift certificates
– usually within a 24-hour period,” said Johnson in his US District
Court Filing.
“As such, consumers feel pressured and are rushed into buying
the gift certificates and unwittingly become subject to the onerous
sales conditions imposed by [Groupon], including illegal expiration
terms that are unconscionably short – often just a few months.
“Groupon and its retail partners rely and prey on the fact that
consumers will often not manage to redeem gift certificates before
the limited expiration period.”
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By GlobalDataVia the FAQs on its website, Groupon says all is not lost once a
Groupon gift certificate reaches its expiration date. While it may
lose its promotional value, customers can still redeem the voucher
at the price they pay for the length of time stated by the gift
certificate laws in their state.
A spokesperson for Groupon told the Chicago Sun-Times
that the company does not comment on pending legal act.
