iscount voucher business Group buy According to the competition regulator, if it cannot change its approach, it may be sued in court.
After investigation Competition and Market Authority (CMA) was launched in April and found that the company does not always provide customers with refunds or other forms of remedies that they are legally entitled to.
In some cases, the CMA also found that Groupon UK would only provide points instead of cash refunds as required by consumer law.
If Groupon wants to avoid court litigation, it must step up quickly and do the right thing for the customer
The company has now contacted regulators and has been told to commit to changes or face court proceedings.
Investigators also found that some vouchers could not always be redeemed within the promotional period, or that the description of goods and services was inaccurate or of poor quality.
CMA added that when customers contact them, the boss must also ensure that customer service meets standards.
It stated that, in addition to potentially violating consumer protection laws, Groupon UK may also violate its formal commitment to the CMA’s predecessor Office of Fair Trading (OFT) in 2012.
As part of these commitments, Groupon UK is committed to ensuring that the information on its website is not misleading and to comply with customers’ legal cancellation and refund rights.
CMA CEO Andrea Coscelli said: “There are more people shopping online than ever before, especially last year.
“Therefore, it is vital that online companies treat customers fairly and refund their payments when they are due in accordance with consumer laws.
“If Groupon wants to avoid court litigation, it must step up quickly and do the right thing for the customer.”
