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St. Charles Attorney Files Lawsuit Against Groupon Inc.

The lawsuit filed by Robert M. Foote on behalf of Adam Dremak claims that Groupon’s “coupons” are actually gift certificates with expiration dates that violate state law.

A St. Charles-based attorney filed a class action lawsuit Wednesday against Groupon Inc. in Kane County Circuit Court asserting that the on-line company offers gift certificates as opposed to coupons.
 
Robert M. Foote, an attorney with Foote, Meyers, Mielke & Flowers filed the lawsuit on behalf of lead plaintiff Adam Dremak. The suit states that Groupon’s “coupons” are actually gift certificates with expiration dates that are in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, according to a press release dated July 20.

The lawsuit alleges that Dremak bought “a Groupon gift certificate redeemable at Nordstrom Rack that expired only five weeks from the date he purchased it.” The suit states that Groupon is in violation of the state law because gift certificates in Illinois have to be valid for at least five years.

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The lawsuit alleges that “through time-sensitive ‘Daily Deal’ offerings and aggressive marketing efforts, Groupon creates a shopping frenzy that pressures consumers to click ‘buy’ and purchase ‘Groupon’ gift certificates with short-term expiration periods of six months to a year—significantly less than the five-year period mandated” by state law.

A motion for a preliminary injunction also was filed seeking to prevent Groupon Inc. from issuing its Groupons with allegedly illegal expiration dates.

A motion for class certification was also filed on behalf of all Illinois citizens who purchased Groupons but did not use them by their stated expiration dates.

Jamie Werler July 21, 2011 at 05:26 PM
Did you know you can use your Groupon for up to 5 years! If you paid $5 for $10, and your Groupon expires, you can get your $5 you spent on your Groupon towards a purchase by law. So, you don't get the whole $10 off, but you still get back what you paid for it.
Jamie Werler July 21, 2011 at 05:46 PM
Also, what about all the other companies out there? They aren't getting sued. Hmm... maybe because people are just looking for a big payout, and trying to attack the largest company that is doing this. I use Groupon regularly. I never have an issue of using the Groupon by the expiration date. If the expiration date is to close and I don't think I'll use it in time, I'll be logical and not purchase it.You would think a lawyer would be able to be logical enough to realize this, and also a lawyer should be smart enough to not be persuaded a shopping frenzy "Groupon creates a shopping frenzy that pressures consumers to click ‘buy’ and purchase ‘Groupon’ gift certificates with short-term expiration periods of six months to a year". Please. People are just ridiculous.
Jamie Werler July 21, 2011 at 06:32 PM
What happens when a Groupon expires When a Groupon expires, customers can still redeem for the price they paid for the period of time defined by state law (5 years in Illinois). This is not new; it’s been in Groupons terms of service and in every merchant contract since May of 2009 – when Groupon was six months old and launched in two cities. Groupon gives everyone refunds if they have any issues with their Groupon experience—they don’t need to get sued for it. http://www.groupon.com/blog/cities/groupon-organizes-class-action-against-itself/
Jim Ryan July 21, 2011 at 07:23 PM
Jamie, Jamie, Jamie - Mr. Foote is a class action lawyer, of course he needs to sue. Must be time for a new car or a well-deserved vacation. I'm guessing it's easier to sue someone than it is to learn to read terms and conditions.

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