Groupon's abject "Sorry"

What should we conclude from the abject apology on Groupon's website today, after accusations that it misled customers with exaggerated offers of discounts?

In response to the hugely embarrassing charge from the Office of Fair Trading that there was widespread evidence of consumer protection laws having been breached, Groupon says:

"We’re sorry."

"We've failed."

"It pains us when we fall short."

"We messed up."

Groupon does squirm a bit, blaming "the negative side effects of our growth" and firms who advertise their discounts on the website and "are unfamiliar with how much capacity their business can actually handle."

Even so, the company has promised to vet its adverts so they don't mislead.

And it will make careful checks on firms who make the offers, to ensure that they can deliver the goods.

But the question hanging over this is whether a monster organisation like Groupon can work consistently in the consumer's interest.

If you are posting hundreds of new offers a day across 50 towns and cities and growing like topsy, can you be 100% confident that they are fair, accurate and reliable?

We will know the answer in a few months because the OFT is basically saying: "I've got my eye on you!"

On the OFT, Groupon comments: "Frankly, we’re grateful any time someone takes the time to give us feedback on how to better serve our customers."

Please remember, Groupon, this is not a gentle piece of feedback, it is a threat of court action and a fine.

Groupon clampdown

Office of Fair Trading takes action against Groupon

The fast-growing discount offers website, Groupon, has promised the Office of Fair Trading to improve its trading practices.

An OFT investigation found widespread examples of Groupon's practices which in the watchdog's view breached consumer protection regulations.

Groupon has said it will change its practices to ensure that prices in its adverts are accurate and honest and that any limitations on availability are made clear.

It's also given assurances that it will check whether suppliers can provide goods in the quantities or time frame suggested.

Groupon was criticised by the Advertising Standards Authority last year for exaggerating savings, not providing evidence that offers were availalble and not clarifying terms and conditions.

The OFT warned Groupon today that it would monitor complaints closely and that any breach of the undertakings could lead to court enforcement orders.