Class Action Suit: Groupon 'Systematically Deceives its Customers'
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) / March 02, 2010 /
Chicago, Ill. / A class action lawsuit alleging deceptive business practices places the spotlight on Groupon, Inc., a high-profile tech startup that purports to have saved consumers close to $100 million dollars since its founding. Groupon sells gift certificates to a variety of merchants by sending an e-mail advertisement to a list of consumers touting big savings through purchasing the gift certificates that it sells.
The nationwide class action lawsuit filed earlier today in Cook County, Ill. claims that Groupon “systematically deceives its customers.”
According to the lawsuit, “Groupon employs a business model where consumers are enticed to purchase a gift certificate, and after the consumer agrees to purchase the certificate, Groupon imposes post-contractual terms on the consumer containing illegal expiration dates. Groupon expressly advertises itself as a company that does not impose, in its own words, 'gotchas,' on the consumer. In clear violation of the law, Groupon imposes illegal terms or 'gotchas,' post-agreement, on the very consumers it prides itself on helping.”
The suit is brought by Jay Edelson and Bill Gray of Edelson McGuire, LLC.
Edelson’s firm, Edelson McGuire, LLC, (http://www.edelson.com) is a leading class action firm that focuses on internet, technology, and privacy issues. According to Gray, “this suit demonstrates that companies must do more than promise savings to the consumers; they must actually take whatever steps are necessary to ensure that their customers’ are protected from fraud—both internal and external.”
About Edelson McGuire: Edelson McGuire, LLC, formerly known as KamberEdelson LLC, is a commercial litigation and legal and political consulting firm with attorneys in Illinois, New York, California, and Florida. The firm’s attorneys have been recognized as leaders in these fields by state and federal legislatures, national and international media groups, the courts and their peers. They have testified before the United States Senate on class action issues and have repeatedly been asked to work on federal and state legislation and policy issues involving banking, cellular telephony and consumer privacy. Their attorneys have appeared on hundreds of national and international television and radio programs to discuss their cases and class action and consumer protection issues more generally. Their class settlements are collectively worth over one billion dollars and have changed the consumer protection policies of numerous industries.
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