Groupon must improve its treatment of British customers

The Competitions and Markets Authority (CMA), Britain’s powerful trade and consumer watchdog, is calling on Groupon to make swift changes to how it treats customers to ensure that it is complying with consumer protection law amid concerns that Groupon is failing to provide some customers with cash refunds and to deliver all products within advertised timeframes.

The CMA launched an enforcement investigation into Groupon UK, an e-commerce marketplace that offers discounts and deals for a range of products and services, in April 2021. It has now written to Groupon UK and other relevant Groupon entities outlining its specific concerns.

Following its investigation, the CMA has found evidence that Groupon does not always provide customers with the refunds and other forms of redress, such as replacement items, to which the CMA considers they are legally entitled. In cases where customers have not been provided with the goods or services that they paid for; they are sometimes only offered Groupon credits instead of refunds.

Andrea Coscelli, CMA Chief Executive, said, “More people than ever are shopping online, especially over the last year. It is therefore essential that online businesses treat customers fairly and refund them money where due under consumer law. Groupon must swiftly step up and do right by its customers if it wants to avoid court action.

“Groupon now has the opportunity to respond to the concerns outlined in the CMA’s letter and to avoid court action by signing further undertakings to address the CMA’s concerns. This may include redress for consumers denied a refund and additional compliance monitoring,” she added.

The platform is registered in the UK as MyCityDeal Limited.

Groupon is an online shopping platform that sells goods and services to consumers. It also partners with business to provide digital vouchers designed to help customers save money when shopping in-store and online. Customers purchase vouchers from Groupon’s website and app and use them to activate discounts at a range of businesses.

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