Groupon in violation of the Illinois Consumer Fraud Act?

Groupon is being sued in Kane County for alleged violations of the Illinois Consumer Fraud Act.  The lawsuit alleges that Groupon’s certificates violate the Illinois Consumer Fraud and Deceptive Business Practices Act, because they do not permit a five year period to use the certificate.  Groupon has not responded to the lawsuit, yet, but has until Monday to respond to the allegations.

A Groupon user (Adam Dremak) bought a certificate for Norstrom’s Rack and was required to use it within 5 days, but failed to do so.  The Groupon user and his attorneys are claiming that the coupon amounts to a gift certificate and is subject to a five year right of redemption.  Groupon has responded in other lawsuits of this type with the offer to redeem the coupon at face value, if it is not used within the five day period.

However, Adam is now seeking class certification for his claim. We will see what Groupon says in its response, but this may have a huge impact on Groupon’s valuation and method of conducting business.  If you have any concerns or questions relating to this matter, then please feel free to contact us.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s