Groupon is committed to providing refunds and improving customer service

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  • CMA Obtains Groupon Discount Shopping Website Commitments To Improve Customer Service And Ensure Accuracy Of Descriptions On Its Website

  • Groupon will offer refunds to certain customers who were not previously refunded

The Competition and Markets Authority (CMA) in April 2021 launched an execution investigation into Groupon UK, an online marketplace that offers discounts and offers for a range of products and services. On August 9, the CMA wrote to Groupon expressing specific concerns regarding Groupon’s compliance with consumer protection law and warning that if Groupon did not change its conduct, it could face legal action. .

The CMA was concerned that Groupon would not respond satisfactorily to customer complaints and would not always provide customers with refunds and other forms of repair, such as replacement items, to which the CMA considers they are legally entitled. For example, in cases where customers had not received the goods or services they paid for, they were sometimes offered only Groupon credits instead of refunds.

The AMC was also concerned that the company would not guarantee the accuracy of product descriptions, that products offered for sale were in stock and delivered on time, and that the items were of satisfactory quality.

Groupon has now signed formal commitments to the CMA that it will ensure that:

Andrea Coscelli, Director General of the AMC, said:

“Much of business is built on trust. It is essential that people who buy online receive what they have ordered and are taken care of in the event of a problem, promptly receiving any refund due.

“We are pleased that Groupon is now committed to addressing concerns about customer service issues and ensuring that it is compliant with the law, so people can feel more confident in their online purchases at the. to come up. “

In addition to potentially violating consumer protection law, Groupon UK potentially violated the previous one. companies that it gave to CMA’s predecessor, the Office of Fair Trading (OFT), in 2012. As part of these, Groupon UK has committed to ensuring that information on its website is not misleading and to respect the legal rights of cancellation and refund of customers.

In order to ensure that Groupon meets its latest commitments, the company will appoint a compliance officer – who will be responsible for ensuring that Groupon adheres to the new commitments – and will have to report regularly to the CMA on its progress. For more information, visit the Groupon survey webpage.

Notes to Editors

  1. Groupon UK is registered in the UK under the name MyCityDeal Limited.

  2. In addition to MyCityDeal Limited, the CMA has written and accepted formal commitments from other relevant entities within the Groupon group of companies that we consider to 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). Together they are called “Groupon”.

  3. 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.

  4. 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). .

  5. Groupon offers refunds to some customers who have encountered issues with their purchase based on its customer service codes. The customer categories are contained in Annex 2 of the commitments.

  6. For media inquiries contact the CMA press office on 020 3738 6460 or press@cma.gov.uk


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