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Groupon Class Action Settlement Details

Written by Nickel - 4 Comments

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Groupon Class Action Settlement Details

It’s no secret that I’m not really a fan of daily deal sites. Yes, you have the potential to save money when using them, but they also create the temptation to spend money on stuff you don’t really want/need.

Well, earlier this week I received an e-mail regarding a Groupon class action settlement. Apparently a number of users have been unhappy with certain poorly-disclosed restrictions on their Groupons (expiration dates, requirements to use in a single visit, etc.) and decided to sue.

As part of the settlement, in which Groupon admits to no wrongdoing, they’ve set up an $8.5M fund to pay claims. If you have an unredeemed and unrefunded Groupon that you bought between Nov 1, 2008 and Dec 1, 2011 you can file claim.

Here’s the thing: You’ve always been able to redeem your Groupon for the purchase price, even after the promotional amount has expired. For example, if you pay $10 for $20 worth of product, that extra $10 might expire, but you’ve always been able to get your original $10 back by redeeming your Groupon.

As it turns out, the settlement appears to stipulate much the same thing. If you submit a valid claim by the deadline (July 27, 2012), you’re entitled to a “settlement voucher” that’s good for the original purchase price of your Groupon. The only added benefit appears to be that, if the merchant refuses to honor it, you’re entitled to an extra 20% from the settlement fund.

However, that settlement fund of $8.5M probably won’t go very far, and they’ll pro-rate claims if the total exceeds the available money. Honestly, I’m not sure why you wouldn’t just re-print and redeem the original voucher instead of jumping through these hoops for a possibly reduced amount.

Published on July 13th, 2012 - 4 Comments
Filed under: Frugality,Online

About the author: is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Comments (scroll down to add your own):

  1. I agree with your sentiment. It seems more and more these class action suits result in a meaningless benefit for the customer (like a $5 off coupon on your next purchase) while several million goes to the law firm that filed the suit.

    Comment by Anonymous — Jul 13th 2012 @ 10:38 am
  2. Wow! Crazy – think Groupon plans to do anything to be more transparent after this settlement?

    Comment by Anonymous — Jul 13th 2012 @ 12:40 pm
  3. Incredible how money just disappears so to speak, with inflation. My opinion of Groupon just dropped out the bottom too. I hear they’re not doing too well financially.

    Comment by Anonymous — Jul 13th 2012 @ 4:44 pm
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