Thursday 24 March 2011

Groupon Offering Vouchers for Fake Companies


There seems to be a lot of deals Groupon is offering in the UK recently for companies which do not exist.

A total of 672 customers in Belfast ordered a Groupon for Crafty Belfast on February 12, 2011, which is valid for 2 months.



Unfortunately, Crafty Belfast doesn't have a cafe! Or cheese! Or cupcakes!



People have been visiting Craft Belfast recently with their coupons, and are suprised to hear that they don't have a cafe, and the cafe they are building will not be finished for another month. After their vouchers have all expired!!!!!!



So customers can't use these vouchers. That's 672 people x £6.75 a person = £4536 for Groupon. Because they have offered a deal for a cafe that DOESN'T EXIST!!!!!!!!



You would think that they would automatically refund everyone who has bought this voucher, since the cafe doesn't exist. However, they are only refunding those who request a refund. And if you've read their Facebook pages recently, no one can get through to their customer service team!


Any other company would be prosecuted for selling vouchers to a store that didn't exist, but Groupon keep getting away with this time and time again. If you have bought this deal, please contact the Advertising Standard's Authority at:

www.asa.org.uk/Complaints.aspx




The second recent Groupon Scam involving a company which doesn't exist comes from London Groupon.

A total of 23 Groupon customers bought a deal for Wow Fat Zap at the Harley Fit Clinic at £299. An additional 939 bought a £39 colonic treatment from the same clinic. Problem? The clinic DOESN'T EXIST!!!!!!



Customers have tried to call the clinic to book an appointment, and the phones are never answered. Several customers then went to Harley Fit Clinic's supposed address at 61 Harley Street.



Unfortunately, the Harley Fit Clinic was not there. Just a note on the door from the doctor's office which is actually located there, asking people to stop ringing the doorbell, because this is not the Harley Clinic!!!!




My question is: How did Groupon not know this was a fake company? Do they not insist on seeing that the company has an actual residence before booking them on Groupon?!?



Of course, Groupon doesn't pay out anything to the company for vouchers that are unused, so the fake company doesn't benefit from this at all, just Groupon! Groupon keeps all the money from unredeemed vouchers.



So why would a fake company set up a scam on Groupon if they are not going to be paid anything?!? My question exactly! Was it Groupon who set up this fake company with a fake address? Since they are the only ones who stand to make a profit by offering vouchers for a fake business, it seems possible.


Groupon have since sent out an email to the customers saying that Harley Fit Clinic has moved to a new address. Then the customers were informed that the company was in Liquidation. Customers who have spoken to the doctor's office where the original address was state that the doctor's office had never heard of the original clinic.


Still very suspicious, people haven't gotten their treatment, or their money back from Groupon. Those who have received a refund, received it in the form of Groupon credits! £299 in Groupon credits? For a fake business?!? Ridiculous!!!!


If you have bought this Groupon deal there are 2 places we would suggest you contact. Please contact the Companies Investigation Branch at:

www.insolvency.gov.uk/complaintformcib.htm

And also contact the Advertising Standards Agency at:

www.asa.org.uk/Complaints.aspx

Since post this, I have received a number few comments from those bizarre 15 people who defend Groupon saying:


'Its beyond Groupon's control if a company decides to change its circumstances, especially if they don't tell Groupon. Do you expect Groupon to ring each person?'



What I expect is:
If Groupon discovers a business doesn't exist, stops answering their phone, or moves without notice... If the expiry dates are changed after purchase, or they company is no longer able to offer what they promised ....Groupon should refund everyone's money! Not just those who ask for a refund! Not in Groupon vouchers! Just give people their money back if they find out the business isn't real, or isn't offering what they promised! Simple and obvious!


But Groupon ARE making lots of money off these fake businesses, changes in terms and conditions, expiry date mistakes! People are requesting their money back and getting no response. And all this is making Groupon loads and loads of cash.


If Groupon makes any mistakes in the advert, if the business is fake, or goes out of business - I expect Groupon to refund everyone in cash, without a request! And this is what I will continue to campaign for until Groupon becomes a more reputable business!

3 comments:

  1. Thats quite a shocking state of affairs,if you really want to get up these peoples noses then try buying at www.livingsocial.com they seem to be a far more robust & legit company going by the fantastic amount they have raised for the Japanese and they are Groupons closest competitor,i understand that these chaps DONT keep money for customers who dont use the vouchers,they still pay the business regardless of whether they turn up or not,quite impressive

    http://mashable.com/2011/03/21/livingsocial-raises-2-million-japan/

    ReplyDelete
  2. I agree! I have been reading up on livingsocial.com after having problems with Groupon's charity scam. I was glad to see LivingSocial matching donations for Japan without all the fancy legal terms.

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  3. Groupon to refund everyone in cash, without a request! And this is what I will continue to campaign for until Groupon becomes a more reputable business. I hope this info is helpful for my How does groupon work business.

    ReplyDelete