Thursday, July 21, 2011
Conn. AG investigates Groupon's expiry policy
George Jepsen, the Attorney General of Connecticut, is questioning the expiration date policy of deal-of-the-day website Groupon Inc. By having expiration dates on some of its discount offers, the popular discount provider may be in violation of Connecticut's gift certificate law, according to Jepsen.
A press release reported that Jepsen wanted Groupon to explain the terms under which its discounted gift certificates, called "Groupons," are sold and redeemed by consumers, how much revenue those sales generate in the state and how frequently expiration dates are imposed on Groupons.
"It appears that what Groupon Inc. sells or offers may fall within the definition of a gift certificate under Connecticut law," Jepsen said in a statement.
Connecticut law prohibits gift certificates from coming with expiration dates, the statement said and added that Jepsen may be the first state attorney general to raise concerns about Groupon's expiration date policy.
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