Minneapolis, MN: Goupon Inc, the Chicago-based business that offers deals online for a wide variety of businesses - from restaurants to spas - is facing a potential class action over allegations that the expiration dates on the discounted deals are deceptive and illegal.
Filed in the state of Minnesota, the suit alleges that both state and federal laws prohibit companies from selling or issuing gift certificates with expiration dates. The suit further alleges that Groupon and its retail partners reap a substantial windfall from the sale of gift certificates that are not redeemed before expiration.
The suit claims that Groupon "preys on unsuspecting consumers"by requiring users to agree to "boilerplate"terms and conditions that include a class action wavier.
The suit was filed on behalf of a Washington man who claims he bought a $20 Groupon for a one-month gym membership worth $305, only to have it expire before he could redeem it two months later. The suit is seeking class action status and unspecified damages.
