Groupon Fever: How Groupon Wards Off Class Action Lawsuits

By Jochen Krisch on 08 Mar 2010

Overambitious lawyers are the bane of every serious startup company. At the moment, Groupon is finding it necessary to defend against a class action lawsuit in the USA – and is doing so with its customary tongue-in-cheek style (“Groupon Organizes Class Action Against Itself”):

“You may or may not have heard that a lawyer named Jay Edelson from a law firm called Edelson McGuire is attempting to organize a class action lawsuit against Groupon, claiming that our deals’ prominently displayed expiration dates somehow “systematically deceive our customers.”

We can think of two possible explanations for this lawsuit:

  1. The law firm sees an opportunity to exploit our success and make a bunch of money.
  2. We are indeed systematically deceiving our customers, but instead of taking advantage of our 100% open refund policy or telling us about their problems or sharing them in a public forum, our customers are secretly gossiping about them to each other and Edelson McGuire, kind of like Emily Johnson did against me in 9th grade (Emily if you are reading this I want my cabbage patch doll back).”

“Corporate Overlord” Andrew Mason reveals how Groupon would like to ward off self-inflicted lawsuits in the Groupon blog.

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Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.

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