Groupon Faces Growing Pains

White hot group buying startup Groupon faced a wave of criticism this week after the owner of a Portland, Ore. cafe claimed she lost almost $8,000 in a coupon campaign, and an Atlanta photographer accused of fraud had her Groupon listing pulled.

The owner of Posies Cafe criticized Groupon’s over zealous sales team, and the fact that her small local business was overwhelmed by customers, some of them snooty, but most of them a financial drain.

“After three months of Groupons coming through the door, I started to see the results really hurting us financially.