CMA asks Groupon to improve customer treatment
- Concerns that Groupon is failing to provide some customers with cash refunds and to deliver all products on time.
- CMA calls on Groupon to quickly change its practices or face legal action.
The Competition and Markets Authority (CMA) in April 2021 launched a law enforcement investigation into Groupon UK, an e-commerce marketplace that offers discounts and deals for a range of products and Services. She has now written to Groupon UK and other relevant Groupon entities. (together, “Groupon”) describing its specific concerns.
As a result of its investigation, the CMA found evidence that Groupon does not always provide customers with refunds and other forms of repair, such as replacement items, to which the CMA considers they are legally entitled. In cases where customers haven’t received the goods or services they paid for, sometimes they’re only offered Groupon credits instead of refunds.
The AMC is also concerned that the company is not ensuring that:
- vouchers purchased can still be redeemed within the advertised periods
- descriptions of goods and services are accurate
- the products are in stock and delivered within the announced deadlines
- the items are of satisfactory quality
- customer service is satisfactory when customers contact them about problems
In addition to potentially violating consumer protection law, Groupon UK could violate formal commitments – known as “commitments” – that it made to CMA’s predecessor, the Office of Fair Trading (OFT), by 2012. As part of these commitments, Groupon UK is committed to ensuring that the information on its website is not misleading and to respecting customers’ legal rights to cancel and refund.
Andrea Coscelli, CEO of CMA, said:
More people than ever are shopping online, especially in the past year. It is therefore essential that online businesses treat customers fairly and reimburse them for money when it is due under consumer law.
Groupon must act quickly and act with respect for its customers if it is to avoid legal action.
Groupon now has the opportunity to address the concerns expressed in the AMC letter and avoid legal action by signing further pledges to address the AMC concerns. This can include redress for consumers who are denied a refund and additional compliance monitoring.
For more information, visit the Groupon survey webpage.
Notes to Editors
- Groupon UK is registered in the UK under the name MyCityDeal Limited.
- In addition to MyCityDeal Limited, we are writing to other relevant entities within the Groupon group of companies which we believe have engaged in behavior that may be contrary to consumer law: Groupon Goods Global GmbH (registered in Switzerland) and Groupon, Inc (registered in the United States).
- Groupon is an online shopping platform that sells goods and services to consumers. It also partners with companies to provide digital vouchers designed to help customers save money when shopping in-store and online. Customers purchase vouchers from the Groupon website and app and use them to activate discounts at various businesses.
- The main provisions of consumer protection legislation relevant to the concerns of the CMA are the 2008 Consumer Protection Against Unfair Commercial Practices (CPR) Regulations, 2013 Consumer Contract Regulations (Information, Cancellation and Additional Charges) (CCR) and the Consumer Rights Act 2015 (CRA). .
- For media inquiries, contact the CMA press office on 020 3738 6460 or [email protected]
Posted on August 9, 2021
Last updated on August 9, 2021 + show all updates