Now, a number of New York customers are speaking out - on sites such as Yelp or through Groupon customer service - to express their tales of woe. Illinois law states that gift cards must retain value for at least five years.
16, before he ever had a chance to use it. The recent lawsuit was filed in Illinois by a man who said his Groupon deal in August expired Feb. After turning down a $6 billion takeover bid from Google, opting instead for the Facebook model of raising their own financing, the Chicago-based company finds itself more successful than ever - booming to 1.14 million subscribers in New York alone.įor Groupon groupies, the company has become so popular that many consumers talk about how much they look forward to the “deal of the day.” “The managers were constantly complaining that we were losing money on the deal.”Ĭall it the Vicious Circle of Groupon: Merchants annoyed by cheap customers, and cheap customers upset at being treated poorly. So as you can imagine, that has a negative effective on service,” says Yasinitsky, 28, a premed student. “As soon as you found out it was a Groupon table, you knew you were going to get screwed.
Yasinitsky says customers almost always tipped based on what they had to pay after the discount - not on the total of the check. For them, a Groupon table was a “red flag.” The online deal-a-day coupon giant, which now also finds itself the subject of a lawsuit, is increasingly coming under fire from customers and retailers alike.įor Yasinitsky, when she worked as a waitress for the now-shuttered East Side Social Club, she would encounter a Groupon customer at least twice a night after the restaurant enrolled in the program - which guarantees significant discounts when enough consumers purchase the “group coupon,” or Groupon.
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