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July 15th, 2011
Connecticut AG Launches Investigation into Groupon
In what may be the first regulatory action against the daily deal giant, Groupon, the Connecticut Attorney General has just announced that he has requested information from the company regarding its consumer discount vouchers, or “Groupons”. Specifically, the Attorney General has asked the company to explain the terms under which Groupons are sold to and redeemed by consumers, how much revenue those sales generate in Connecticut and how frequently expiration dates are imposed on the sale of goods and services at a discount.
The AG’s focus appears to be whether the Groupons violate the state’s law banning expiration dates on gift certificates. This issue is also at the heart of the many class action lawsuits pending across the country against Groupon, its competitor Living Social, and the merchants whose goods and services are offered by these companies.
While it is too early to predict the results of this regulatory inquiry, or whether other states will follow suit, industry will be watching closely whether Groupon will be able to satisfy the Attorney General’s concerns by explaining that only the additional (or “promotional”) value of the vouchers expire, and not the amount paid for by the consumer.
If you have any questions about this investigation or any other advertising or marketing law issues, please contact Terri Seligman at firstname.lastname@example.org or (212) 826 5580, or any other member of the Frankfurt Kurnit Advertising Group.
Disclaimer. This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
Other Advertising Law Alerts
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Late last year, Congress passed the Consumer Review Protection Act, a law designed to stop businesses from using contracts to prevent customers from posting honest reviews about the business.
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FTC Finds “All Natural” Claim Violated FTC Act
The FTC has issued a Final Order against California Naturel, Inc., a seller and marketer of personal care products, finding that the company's "all natural" claims were false and misleading in violation of the FTC Act.
December 15 2016
FTC Policy Statement Focuses on Homeopathic Health Claims
Last week, the Federal Trade Commission issued its new "Enforcement Policy Statement on Marketing Claims for Over-the-Counter (OTC) Homeopathic Drugs," as well as a staff report on a workshop that the Commission held last year on OTC homeopathic drug advertising.
November 28 2016