Groupon to get the beady eye treatment from the Office of Fair Trading

2 December 2011

Bitterwallet - Groupon canvas deal

If you think the Advertising Standards Authority is lacking in teeth, then you’ve never seen it pushed to its limits. Because then, and only then, it’ll set the Office of Fair Trading on to you, and THEN you’ll be in trouble. Hell, yeah.

That’s the fate that is in store for poor old Groupon, as punishment for them breaking UK advertising regulations a mere 48 times in 2011. Is that fair? Is it?? Erm, yeah, probably.

As well as probing the doings of Groupon, it’s expected that the OFT will have a closer look at the whole ‘daily deals’ industry, which has grown hugely over the past couple of years and now fills up our email inboxes with shit we’re not interested in as we sleep.

Groupon’s latest major breach of the ASA’s code came last week when they were found to be in the wrong after offering discounted, life-changing plastic surgery with less than a day for potential punters to make the decision to opt for the incision.

4 comments

  • Alexis
    So you have 48 strikes? These teeth sound very small and nibbly!
  • Andy
    The Groupon business model is based on hype and is going to burst just like the dotcoms. How can a model that relies on it's customers (the businesses taking part in the offers with Groupon, not the end coupon user) losing money with such high risks sustain itself? This unscrupulous behavior is more proof of it's failure to deliver genuine value to business owners.
  • simon
    Good and about time! I have had no end of grief with deals from there. What I don't understand is why the small companies that get involved with Groupon don't limit the deal to a manageable amount? Why would a small business take on many times more than it could deal with and make a huge loss into the bargain?/?
  • The B.
    Groupon is all about building product hype and then overvalueing for an IPO, 2 of the directors have done it before on a company that folded in on itself, for Groupon to value themselves at the same amount as Facebook is just laughable (although Facebook being worth that much is too).

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