Are Groupon’s Coupons Illegal In Connecticut?

It has something to do with semantics because the coupons that Groupon sells can fall under that category of gift certificates. Similar to other states, like California, Connecticut says it illegal for gift certificates to expire.

Groupon has been hitting some snags in regards to their daily deals. Apparently there are around 12 federal lawsuits going toe-to-toe with the coupon company’s business practices. Even the state of Connecticut is contemplating that quite possibly Groupon is breaking the state’s law by doing what it does — that is letting its deals expire.

It has something to do with semantics because the coupons that Groupon sells can fall under that category of gift certificates. Similar to other states, like California, Connecticut says it illegal for gift certificates to expire.

Thereby, the state’s Attorney General wrote to Groupon concerning its business practices and the expiration law. Now, the company has until August 5, 2011 to answer back. I am curious how Groupon will answer back, taking into consideration the importance of deal expiration of Groupon’s business model. Will Connecticut require Groupon to leave the state? It will be interesting to see, but the customer is always right.

The lawsuits stem from consumers who filed federal court lawsuits challenging Groupon’s business practices. The cases include those originally brought in California, Massachusetts, Washington, Alabama and Illinois. They have been consolidated for pre-trial proceedings before U.S. District Judge Dana Sabraw in San Diego.

While the lawsuits manifest, the coupon company is making plans to move ahead with its intended $750 million dollar IPO with Morgan Stanley, Goldman Sachs Group and Credit Suisse Group AG managing the filing. So, it appears Groupon is business as usual until justice is served.