Online Deal Programs and Merchant Liability


Unknown only a few years ago, online daily deal sites such as Groupon and LivingSocial have become a ubiquitous phenomenon, touted as being of considerable benefit to participating merchants. That may be so, but they also carry a risk of legal exposure that merchants would do well to consider and take prudent steps to mitigate. Already, Groupon's program has reportedly become the subject of several investigations by state attorneys general and more than a dozen state and federal class action lawsuits. In some of these class actions, participating merchants have also been sued, so it's not just the promoter's problem.


The online promoter emails its subscribers notice of short-fuse deals that the promoter has solicited from participating merchants. The deals must conform to certain general criteria established by the promoter and, typically, are for a substantial discount on specified goods or services. If interested, the consumer clicks through to the promoter's website, where the terms of the deal are more fully explained. The consumer completes the purchase on the website, and receives an email confirmation of the purchase that is then printed and presented to the merchant in return for the proffered goods or services. Typically, the certificate expires if not used within a designated time.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© International Lawyers Network | Attorney Advertising

Written by:


International Lawyers Network on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.