Judge OKs Groupon Lawsuit

Deals site accused of bait-and-switch advertising

As Groupon prepares for its problematic upcoming IPO, there’s more trouble brewing for the daily deals site. According to Reuters, a U.S. judge said yesterday that parts of a lawsuit accusing the site of bait-and-switch advertising can proceed.

The proposed class action suit was brought against Groupon earlier this year by a San Francisco tour operator that accused the site of false advertising. The lawsuit claims that Groupon buys tour-related keywords on Google’s AdWords service, but often doesn’t actually offer tour coupons when customers arrive at Groupon’s site.

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