News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
UK trading authority to investigate Groupon deals
Reports in the UK press show that Groupon is fighting yet another battle. This time the daily deals company has been referred to the Office of Fair Trading by the Advertising Standards Authority after repeated breaches caused much concern.
Groupon was referred to the Office of Fair Trading (OFT) by the Advertising Standards Authority (ASA) over three specific allegations: "failure to conduct promotions fairly, such as not making clear significant terms and conditions"; "failure to provide evidence that offers are available"; and "exaggeration of savings claims".
According to the ASA, "We are taking this approach because, given Groupon's track record, we have serious concerns about its ability to adhere to the Advertising Code. It is in the public interest that we refer the matter to the OFT, the OFT being better placed to address any underlying issues concerning Groupon's trading practices generally."
The ASA has identified at least 48 misleading offers promoted by the website in just under a year. Not all complaints are from consumers. Many businesses have expressed regret about their dealings with Groupon.
Earlier this year a survey by UK-based copywriting boutique Cooper Murphy revealed that almost half (49%) of merchants won't run a second Groupon deals campaign, despite nearly two-thirds having made a profit. Why? Because, said 78% of merchants, people who flock to the group buying site are more 'stingy' than regular customers and repeat business is 'unsatisfactory' (82%).
Groupon responded to the recent allegations by stating in an email, "We are constantly evolving our business process to ensure customers receive the best possible experience at the highest standards. We are cooperating fully with the OFT to ensure that the rights of consumers are protected."
- Intent HQ: Consumers want brands to be honest and transparent about data collection
- Forecast: 250 million smart wearables in use by 2018
- Ad Roundup: Making mobile, social, video simpler
- Report: Retailers' investment in mobile paying off
- Survey: Customer service/support high on brands' focus list
- How indie retailers fit into the online space
- Latest mobile network tests find Vodafone wanting
- Ad Roundup: Sales tools and caller response
Featured White Papers
- Three Converged Media Campaigns Worth Emulating
The old adage, "you get what you pay for" may no longer be true when it comes to traditional paid...