Groupon Inc (NASDAQ:GRPN)’s $500,000 settlement over expired voucher fiasco
Sack Goldblatt Mitchell, the Toronto-based law firm which was pursuing a class-action suit against Groupon Inc (NASDAQ:GRPN), over expired deal-purchases says that the latter has now agreed to settle for over $500,000. The settlement is for all customers located across Canada who have vouchers that expired before 8 March 2013, have tried to redeem their expired vouchers but have not been able to do so. Some were able to only redeem their vouchers for a segment of what they had originally paid for. Two similar lawsuits had been filed in Ontario and Atlanta as well.
According to the notice sent out by the law firm, under this particular settlement, the Alberta lawsuit will be discontinued and the lawsuit in Ontario will cover customers right across Canada. Via the agreement a settlement fund of $535,000 will be established and $235,000 in legal costs will be paid from it. The balance amount has been set aside to clear the claims of affected customers.
Hang on to that Expired Groupon
There are times when customers forget a Groupon and let it expire and they cannot enjoy the deal that had prompted them to buy it. But customers should know that they do not have to lose the actual money that they had spent to buy it. This is because the entire value of the Groupon is made up of two parts and fact is that its expiration date applies only to one. “Amount paid” is that which was actually paid for the coupon and “Promotional value” is what was added over and above the amount that was paid by the customer.
Though you might give up on the “deal”, the Groupon can still be redeemed for the amount that had been paid. It actually acts as a credit towards the full price of the service or product so that the customer does not really lose any money. However, the difference will have to be compensated for. Technically, it is possible to redeem Groupons and almost all other daily-deal vouchers, up to five years post the purchase date. In this case, the Groupon Inc (NASDAQ:GRPN) vouchers had become unredeemable and Groupon has been setting that right.