HARTFORD -- Attorney General George Jepsen announced today that Groupon, Inc., has improved the consumer disclosure information on discount vouchers sold nationwide after his office raised concerns about the expiration of discount deals. 

Jepsen was the first attorney general to address the expiration issue with Groupon, although it has been the subject of private litigation across the country, including a class action lawsuit that the company is currently seeking court approval to settle.  Connecticut is not a party in that lawsuit.

“I am very pleased that my office was able to play an integral role in vastly improving the voucher form disclosures,” Attorney General Jepsen said.  “Groupon has been very cooperative and responsive to the issues that we raised. As a result, American consumers will benefit from a clearer explanation of what they are getting for their money.”

Groupon introduced the revised vouchers throughout the country late last week. A statement advises purchasers that the sales value -- the amount they paid for vouchers -- may be used with the designated merchant at any time without expiration, even after the Groupon promotional value -- the bargain offered by the voucher -- expires. 

For example, a consumer may pay $20 for a Groupon voucher entitling them to $40 worth of goods and services if purchased by a certain date. If the voucher has not been used by that date, the $40 promotional offer expires, but the purchasers may still redeem the voucher for $20 in goods or services from the issuing merchant.

The same terms apply to vouchers sold before the language was revised. Consumers who experience difficulty in trying to redeem the purchase value from old vouchers should contact Groupon customer support at support@groupon.com or call (877) 788-7858.  They may also call the Attorney General’s Consumer Protection Department at 860-808-5400.

In July of 2011, Jepsen wrote to Groupon seeking to determine whether the company’s vouchers violated a Connecticut law prohibiting the sale of gift cards and certificates subject to an expiration date. At the time, Jepsen said “I have not prejudged Groupon or reached any conclusions. I am hopeful that any issues can be resolved through discussion and cooperation.”     

Groupon disputed that Connecticut’s gift card law applied to its vouchers, which have both a sales value and promotional value. No court has yet addressed or resolved the question.

“This issue will likely continue to play out in litigation across the country under the terms of various states’ laws, and our legislature may wish, at some point, to revisit or clarify the intended scope of Connecticut’s gift card statute,” the Attorney General said.

“Reasonable minds may differ about whether Connecticut’s gift card law was intended to apply to these kinds of vouchers,” Jepsen said. “But regardless of any legal uncertainty, consumers are entitled to a clear explanation of what they are getting when they purchase a Groupon voucher.  Groupon’s new voucher format does a far better job of providing that information than the format in use when we began talking with the company.”

Assistant Attorneys General Jeremy Pearlman and Jeffrey Zeman handled this matter for the Attorney General with Assistant Attorney General Phillip Rosario, head of the Consumer Protection department.

Susan E. Kinsman

susan.kinsman@ct.gov

860-808-5324 (office)

860-478-9581 (cell)