Why Does Groupon Ask for Credit Card and Then Again on Voucher
The inside story from Groupon: why it got into trouble, how information technology's cleaning upwards its act and what its refund policy is exactly
The leading daily deals voucher website Groupon has come under fire from the Part of Fair Trading. This is Money reporter Tara Evans went to its offices to run into the team, pass on your complaints and detect out what changes, if any, are being made.
In the terminal ii years Groupon has managed to break over 20 advertizing regulations.
The subsequent referral to the Office of Fair Trading resulted in a firm slap on the wrist for the online discount voucher behemothic from the watchdog.
Probe: Our reporter Tara visited Groupon'south offices to laissez passer on your complaints and speak to its bosses. So tin can the firm make clean upwards its human action?
The OFT concluded last month that Groupon must make clean up its act and gave it three months to make changes in the following areas:
- Giving accurate, honest and realistic assessment of the businesses ability to deliver the goods or service before the voucher expires.
- Clearly displaying the limitations to the voucher.
- Fair terms and weather
- Refund policies and cancellation rights must not break Distance Selling Regulations – which stipulate that customers buying online are entitled to a full cash refund within 7 days.
- Additional steps must be taken my Groupon to ensure that health or beauty product claims can be backed up.
On the solar day of the announcement, Groupon was quick to admit its mistakes: the visitor published a weblog apologising to customers and outlining how it was going to address the problems that the OFT had picked up on.
Its United kingdom managing directors Roy Blanga and Tobi Tschoetsch also offered to speak to the media, keen to put their indicate of view across.
Before my visit to Groupon'south offices I asked friends and colleagues for their thoughts: t he responses were very mixed, but everyone had an opinion on the company.
Not bad for a firm that didn't exist in the Britain but over two years ago.
So how is Groupon getting on?
Roy Blanga and Tobi Tschoetsch insist some of the changes are already beingness fabricated.
At the finish of last year Groupon 'introduced further chapters planning' to its processes: in English this ways Groupon are working more closely with the businesses who information technology sells deals to brand sure they can cope with the amount of people signing upwards - a key betoken of the Ofttimes conclusions.
The visitor is too nigh to launch an online calendar for spa businesses, which will hopefully be extended to others. Groupon UK is about to practise a deal with Groupon US to use an online scheduler calender to Groupon UK's customers. The tool, which has already launched in the Usa, will be free and can be used to volume Groupon appointments or deals or as a calendar service for an unabridged business.
The idea is that this will assist with the administrative problems that frequently crusade vouchers to go unused and expire because customers cannot book appointments. Information technology will non be compulsory for businesses who sell services via the website.
How is Groupon handling specific refund complaints?
After publishing this article nearly ane reader's problem , we received emails from readers with similar difficulties getting refunds. On my visit to the Groupon function I handed over a folder containing 12 of these emails .
Groupon told me that many of the complaints I had passed on were already in the process of existence solved and they accept updated me on the status of each enquiry (see beneath).
GROUPON'South REFUND POLICY
We are confident in the businesses we characteristic on Groupon U.k. and back them with this Groupon UK Promise. If your experience using your Groupon ever lets you down, nosotros'll return the purchase price of your Groupon, either every bit cash or as a Groupon UK credit. Simple as that.
If you are e'er having trouble redeeming your Groupon, we are hither to help. We approach refund requests for unredeemed vouchers in this straightforward way:
ane. Our first response will always exist to try and help you receive the feel you purchased.
ii. If we tin can't assistance you lot in redeeming your voucher, we will offer you Groupon UK credit to try some other experience.
3. If you don't want Groupon UK credit to use towards another offer because Groupon has let yous down and it's inside the validity period, we'll return the purchase price of your Groupon.
If a business closes permanently, nosotros will always honour returns for unredeemed Groupons.
In accordance with the law, on the vast majority of deals, any unredeemed Groupon may exist returned for a full cash refund within the beginning vii working days from the twenty-four hours after the mean solar day that you lot receive the Groupon. If you've already redeemed your voucher, and you lot're disappointed with your purchase, delight contact u.s.a. and we'll evaluate returns on a example-past-instance basis.
The directors stressed that the number of complaints I had received were infinitesimal compared to the amount of vouchers that the visitor issues everyday.
According to Groupon there are over 250 unique deals from over 200 businesses in the UK everyday, with some deals attracting as many as 3,000 customers.
Simply the vexed question of whether customers who tin can't book an appointment have the right to expect a greenbacks or credit refund very much remains, as is evident from our readers' emails below.
Are you entitled to a cash or credit refund?
The law is sketchy, simply the Oftentimes said the Distance Selling Regulation is key.
The law says that there should be a 'cooling-off menstruation', usually 7 working days, where y'all can cancel your order for any reason - a measure adopted by the group.
I spoke to the Oft and asked them if a customer should expect a cash or credit refund.
They said any refund made during the cooling-off menses (first seven working days after purchases) for any reason should exist cash. Any refund outside this period is up to Groupon and this means it tin be either credit or cash depending on the situation.
During our meeting Groupon told me most its Groupon Promise .
Its website says: 'If your experience using your Groupon ever lets y'all downwards, well return the purchase price of your Groupon, either equally cash or as a Groupon UK credit. Simple as that.'
But it'southward non that simple: t hither is still a raft of terms and conditions to contend with.
If you lot purchase a voucher from Groupon and so you lot must go dorsum to them for a refund if you're unhappy or tin can't get the bargain.
Then if you ask Groupon for a refund inside seven working days you will go a greenbacks refund to your payment method in line with industry rules, the Distance Selling Regulations.
However, afterwards this fourth dimension the process becomes complicated. If y'all are still trying to get an appointment after vii days and so contract Groupon you may just be able to become credit.
Even if yous contact the company immediately and and then study back to Groupon they will then try and book an appointment for yous.
Groupon volition also look at your availability and say that if you lot are willing to proceed a number of dates but they are unavailable, they volition give you a refund.
However, if you do not put forward enough times they will only refund credit to your Groupon business relationship.
It seems like the consumer protection laws are inadequate fro thsi new breed of discounting. Many bug take more than a week to come to light - exterior the seven-twenty-four hour period cooling off period and technically this would mean the client is not entitled to a cash refund.
Groupon said that they like to deal with complaints on a case-by-case basis, so difficult and fast rules are difficult to establish. But equally a result of our coming together Groupon also promised to clean upwardly the wording of its refund policy on its website.
In the meantime it's upward to customers to be aware of what they are and are non entitled to.
How did Groupon go itself involved in an OFT investigation in the first identify?
Tobi Tschoetsch said: 'In that location'due south no blue print. We're the market leaders and we're learning from our mistakes.'
Do yous believe Groupon? Accept you ever had a problem getting a refund? Tell usa in the reader comments below.
GROUPON: YOUR COMPLAINTS ANSWERED
When I went to meet with Groupon I passed them a folder containing twelve emails I'd recieved from This is Money readers who had trouble getting a refund. Beneath are the details and how Groupon responded.
'I didn't know who to go to for a refund'
Nosotros bought a hotel bargain last Jan (£95 for a night with dinner and breakfast at the Stanton House Hotel) and went to volume it well-nigh immediately (every bit in, the same day). The deal was available from January to March but they told u.s. that no weekend or Monday/Friday rooms were available as they were all busy.
They then said that if we wanted to stay AT ALL, we couldn't have the 'deluxe' room we'd booked but could just take a standard room as everything was all booked and "what could nosotros expect for the toll nosotros paid".
We couldn't become time off during the week so ended upward not going at all and wasting the money.
B.Thousand
Groupon said: A bulk email was sent to customers explaining that weekend were no longer available and they were asked to contact Groupon if they wanted a refund.
Equally the client didn't contact Groupon it did not know in that location was an issue. Voucher is showing as redeemed. Groupon is even so investigating.
'I've been waiting for four months for my society'
I have used Groupon for diverse purchase on 10 occasions over the last 12 months.
The bulk of them have been admittedly fine, apart from i. This is a purchase from Grape Gifts, which dates back until 5 November, and I still have not received either my souvenir, nor a refund. I have tried several times to become this resolved, but to no avail. This has left me out of pocket by £21.99 and no longer feel I tin trust Groupon.
C.H
Groupon said: Information technology was aware of the problem and was working with Grape Gifts. The customer first contact Groupon in January and Groupon said information technology would speak to the businesses on her behalf. Customer emailed again to say order had not been received. Groupon replied to say that the businesses had been experiencing problems and Royal Postal service had lost some orders. Customer contacted Groupon again in March and requested a refund.
Groupon have now refunded the reader fully to payment method and issued a £20 credit to her account as a gesture of goodwill.
C.H said: I received an email from Groupon offering me a total refund. I would accept preferred the wine, but I remember iv months is long enough to wait, and then I will give up on the wine!
'I couldn't go a booking'
I tried to volume a cleaning service that I have a Groupon Voucher for but they were fully booked. I was told they were overbooked by Groupon. I tried to get a refund as the voucher does not elapse until 5 Apr only they only offered me credits. I want a refund considering I paid for something upfront that could not be provided .If a voucher tin can't exist fulfilled then surely I'm entitled to a refund?
C.E
Groupon said: Neither partner nor client made Groupon aware that there was an issue. The customer purchased the deal in October 2011 and only contacted us on the 14 March 2012 to say that she was unable to volume prior to the expiry of the deal.
On the 15 March our customer service adviser offered her a credit for the purchase toll of the voucher.
Client has been refunded cash to her payment method and has been issued with a £15 gesture of goodwill.
'I'm having a terrible time getting a refund'
I am having a terrible time with Groupon. I bought a voucher for £49.00 for half-dozen LED lights and I received a few e-mails from LED low-cal zone apologising for the delay in sending them out. The last email from them promised commitment around the 19 of January. I started request Groupon for a refund simply all I get is a reply asking me to wait some other 14 Days.
D.C
Groupon said: Partner has experienced delivery delays. Groupon enlightened of the trouble and working with the partner. The client contacted the customer on the 6 Feb to say that had not received the product. The customer service counselor responded on the same day to notify the customer that Groupon would speak to the partner. On the 28 March the customer stated he wanted a refund and the advisor requested a voucher refund. Customer contacted This is Money equally refund was beingness procedure. The client has been refunded £88 for both vouchers to payment method and issued with a £xx credit to his Groupon account for a gesture of goodwill.
I've been waiting for a month for a refund
My refund request from Groupon has been ongoing for a month now and is going around in circles with the rep being very polite, but completely unhelpful with requests for different pieces of data some of which he already has. It certainly feels similar a stalling tactic and is extremely frustrating.
After buying a Groupon voucher for Nutrition to your Door my guild was cancelled dorsum in February. Nothing was e'er received, no dispatch email was ever received.
Needless to say I have not received any refund from them, which was probably naive on my part seeing every bit they shouldn't actually have my credit card details equally the order was through Groupon, hence the need to become through them.
I'm disappointed that I was not informed there was an issue with my refund as Groupon specifically said they'd be in touch if whatsoever issues arose.
F.W
Groupon said: Information technology was not made aware of any issues with this partner. A customer service advisor told the customer that if the order was not fulfilled within ten working days, from the 24-hour interval she sent her complaint to Groupon, that a refund would exist candy. This refund was already in process before This is Money meeting. A refund has been processed and a £20.00 gesture of goodwill,
F.W said: Just to let you know I've received my refund from Groupon and they besides added £20 credit to my account. I merely wanted to thank you so very much for helping out with my problem and helping me get my money back. I really appreciate what you did.
'I'm downwardly £157 because of Groupon'
In Apr 2010, I bought a voucher for 'IPL' laser therapy at the Harley Street Light amplification by stimulated emission of radiation clinic for £99. Groupon ended upwardly cancelling the offering simply I had already topped up the bargain with the clinic (£60 extra for another area) so chose to continue. The clinic shut down and didn't reply calls/emails - I asked Groupon for help in tracking them downwardly and they refused.
Groupon did give me £fifteen compensation which I put towards some other voucher purchase for a nutrient intolerance test with Nash Wellbeing Clinic (£59) in April. The voucher said the clinic was open on Saturdays and nine-5 on weekdays. When I called the clinic, they couldn't fit me in for 3 months and could only offer me appointments in the middle of the twenty-four hours. This went on for viii months and in the terminate I requested a refund which Groupon agreed to provide as credit.
In November 2011, I put all my remaining credit towards another IPL laser deal through Groupon for Ivo Venturi and paid an boosted £55. I emailed the dispensary to set an engagement and whilst they initially responded with a engagement, they and then didn't confirm it. I emailed 3 more times and called about 5 times and got no response.
I did go back to Groupon to say I had had enough of dealing with them and the poor companies they partner with to offering their deals. They eventually agreed to refund £55 but none of the other money I have wasted on their deals previously (totalling £157).
I experience really lost on what to exercise next every bit I've already spent so much time trying to get the money from the original bargain back with no success. I was tempted to take GroupOn to court to merits costs plus compensation but I think they've been really clever with the legalities of their deals and don't feel I would be successful.
H.L
Groupon said: Groupon is aware of this issue and has been working with partner to resolve booking result. Issue resolved on the 26th of March with new booking page. The client emailed on the 29/01/2012 stating that she was unable to contact the partner after scheduling an appointment. The advisor relayed the contact details. The customer insisted she would rather opt for a refund and this was processed on the 06/02/2012. Refund to payment method on 06/02/12.
H.50 said: I wanted to say thank you and then much for following upwards with GroupOn regarding my situation. I received an email on Friday saying that they are going to refund most of my money. I actually am then grateful.
'I can't get a refund for my VW Camper Van hire voucher'
I read with great involvement your article on Groupon regarding trying to obtain a refund for a service not provided. I purchased a Groupon voucher for £119.00 for a three twenty-four hour period VW Camper Van hire with a visitor called Bounce Rentals. I tried on a number of occasions to contact Bounce Rentals to book a vehicle, but could not get through to them, and left a voice mail with my contact details; they did non reply.
I eventually managed to speak to them afterwards the expiry date, and was told that it was exterior the voucher validity dates and we should contact Groupon directly.
I contacted Groupon to arrange a refund and was told that I was not eligible for a refund because it was outside of the voucher dates, and I did not try to book it using email as the 'Fine Print' indicated.
After a very lengthy telephone chat she finally offered me a refund in the form of Groupon vouchers which I refused as I believe I am entitled to a full refund, and she continually emphasised this offering was purely equally a good volition gesture as they are under no obligation to provide united states with any form of refund.
As in your commodity, it's very frustrating as I tried to contact the supplier within the time frames, only could not get any reply from them, and have now lost £119.00 simply because the supplier did not answer the phone. This is totally unfair and cannot exist right.
Chiliad.B
Groupon said: Partner Bounce Rentals did not respond to customer'due south booking request before the book by engagement had passed and at present will not accolade booking. Groupon had not been made aware of any other issues with this partner. Customer contacted customer service on the 22/03/2012 to say that she was unable to book. The advisor highlighted that bookings had to be fabricated prior to the deadline equally highlighted in the fine print of the deal. The advisor offered credits on the 23/03/2012 and did not receive a response. Groupon has now offered a total refund to payment method volition be processed
'V months and no mattress commitment and I'm however waiting for a refund'
I placed an guild via Groupon for a purchase of a king size mattress at a price £159.99 + £14.99 postage in late October 2011 with matching bedrooms to evangelize in 4 to half-dozen weeks.
I had not joy afterwards repeated emails/calls/excuses and broken delivery dates with matching bedrooms
I escalated this to Groupon in January by electronic mail and telephone and when I pushed for a refund, a managing director called back to say the information technology would be delivered a couple of days later - notwithstanding nothing.
I requested a refund equally three months and still no delivery.
On 12 February I was emailed to say this refund was being authorised and would exist paid within 14 working days. At the beginning of March they informed me that they were still waiting for authorization from HQ. Later on escalating I was informed that I would get an email update by 6pm- still nothing. I called two days after and now told that this has been escalated and expect email confirmation within 5 working days. Surprise, surprise, cipher afterward seven working days and counting. A full of v months from the original order and no end in sight. What would I do?
L.J
Groupon said: We were aware that the partner has been experiencing delays and we were working with the partner. Refund was processed on 27 March 2012, prior to receiving the data from This is Money.
'I tin't get a refund for my lipo voucher'
I wanted to tell you lot most my feel with getting my money dorsum with Groupon. I booked iii sessions of Ultrasound Lipo with USWL in Peterborough. I so changed my mind because when I called them to really book my appointments, I was told that you lot need at least 12 sessions to show any divergence and they then tried to sell me 9 more than. I eastward-mailed Groupon and didn't hear anything, so called them today - the person who I spoke to in Liverpool, said I had to first get an email from USWL confirming that I had no appointments booked - and then forrad information technology to Groupon with a covering cancellation email - USWL accept a 0844 phone number and all you always get is voicemail, and nobody calls yous back - frustrating to say the least!
Due north.W
Groupon said: Groupon was aware of the issue of the business organisation not being able to deal with the book of phone calls. It is liaising with the customer service team to help them. Some appointments were cancelled too - Groupon refunding upon request. Customer requested a refund on 11 March, counselor said she would demand written confirmation from the merchant. Client emailed This is Money on 12 March. Client told Groupon about problems contacting the website and Groupon supplied them with email address. The customer emailed written confirmation and refund was processed by Groupon.
Source: https://www.thisismoney.co.uk/money/news/article-2128876/The-inside-story-Groupon-refund-policy-exactly.html
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