Groupon sued over expiration dates; DealsGoRound now selling unused deals and Coupons
Sites like LivingSocial Groupon and offers daily offer of discounts on services and products, but the coupons come with a warning: an expiration date.
A new lawsuit filed in Illinois, seeks a preliminary injunction to block the sale of offers Groupon. According to the Chicago Tribune, Adam Dremak spent $ 25 on an agreement in November 2010 Groupon for $ 50 of merchandise at Nordstrom Rack. The bond due December 31, 2010, before he could use.
Dremak and his lawyers contend that deals with every day as Groupon should be classified as gift certificates. The Illinois Consumer Fraud and Deceptive Trade Practices Act prohibits gift certificates to be sold or issued, if it expires in five years.
Approximately 15 percent of all coupons site daily treatment are never used, reports Fox Business.
“That’s money you are literally throwing,” financial expert Ellie Kay family says, noting the dates of maturity. “It can be a great price, but is not suitable in the local environment, a store that frequent or want to try or the weather is bad, the value proposition has gone out the door and you’ve wasted your money.”
Groupon revealed last week in a regulatory filing for its planned initial public offering (IPO) that the company currently faces more than 15 similar lawsuits and doubts their vouchers should be classified as gift certificates, reports Chicago Tribune.
In addition, reports next Groupon Web, and along with Buywithme LivingSocial OpenTable, have been sued for patent violation. Inc. SellerBean relatively unknown company has filed a lawsuit in the Court Eastern District of Virginia for infringing patents related to the supply of goods and services at reduced prices.
Julie Mossler Groupon spokesman said Thursday the company does not comment on litigation.
Meanwhile, buyers who suffer from “Groupon remorse” may be a solution.
New sites like DealsGoRound.com allow customers to sell stamps unused or unwanted to avoid losing all your money. According to The Associated Press, sellers can list Groupon or LivingSocial unwanted offers 10 percent of the purchase price in DealsGoRound.
Another site, LifeSta.com requires vendors to pay 99 cents more than 8 percent of the sales price. Buyers do not pay fees to each site.
“People buy refers to good intentions,” DealsGoRound founder and CEO Kris says Petersen. “But the planning does not come together or they run out of time to use the treatment.”
As with eBay, both DealsGoRound and work as intermediaries Lifestar for their transactions smoothly. They also require vendors to submit receipts before they are listed, and buyers guarantee refunds if something is wrong with the coupons.
Site Aniother, CoupRecoup.com is based more like Craigslist. Buyers and sellers contact each other and find ways to exchange the coupons themselves. CoupRecoup no guarantees, but sellers can not prefer it because there is no charge.
Media Daily Deal estimated that more than 400 sites similar to Groupon and LivingSocial, and the second hand market has become a natural byproduct.
However, if a court decides discounts every day now have to be considered the same as gift certificates, their business models may change and subsequently affect sites like Lifest and DealsGoRound. Today, LivingSocial has five days to return bids for any reason, while Groupon not offer refunds.