AG Jepsen questions Groupon about Conn. business

Attorney General George Jepsen. Credit: Ned Gerard/CT Post

Attorney General George Jepsen is looking into the popular website Groupon to see if its business practices in the state violate Connecticut laws becasue of the expiration dates the company places on some discount offers sold to consumers.

Jepsen sent a letter to the CEO of the Chicago-based company, Andrew Mason, asking him for information about the discounted gift certificate, a news release from the AG’s office said. The release stated that Jepsen is specifically asking Mason to explain the terms of sale for “Groupons” that are sold and redeemed by consumers, how much revenue those sales generate in the state and how often expiration dates are put on the discounts.

“It appears that what Groupon, Inc. sells or offers may fall within the definition of a gift certificate under Connecticut law,” Jepsen said in the news release. Connecticut law prohibits gift certificates from being sold or issued subject to an expiration date.

“Discounts on goods and services are good for Connecticut consumers, but only if they are getting the benefit of what they are entitled to under Connecticut law,” Jepsen continued. “I have not prejudged Groupon or reached any conclusions. I am hopeful that any issues can be resolved through discussion and cooperation.”

According to the release, Connecticut is the first state to raise questions about Groupon, but there have been private civil suits filed nationally challenging expiration dates.

Jepsen asked for the information to be provided to him by next month.

Assistant Attorneys General Jeremy Pearlman and Jeffrey Zeman are
handling this issue for Jepsen, the release stated.

Read the letter Jespen sent to Groupon by clicking here.

Tom Cleary