Class Action Commenced against Groupon in Ontario

TORONTO, June 15, 2011 /CNW/ - A class action has been commenced against Groupon Inc. ("Groupon") in Ontario on behalf of consumers who have purchased or acquired a voucher, also known as a "groupon", for services and products.

The lawsuit alleges that Groupon engages in "unfair practices" contrary to Ontario's Consumer Protection Act, by selling vouchers with expiration dates that are against the law. In addition, it alleges that Groupon relies on "terms and conditions" which confuse and mislead consumers and are deceptive, ambiguous, contradictory and confusing.  The lawsuit further alleges that Groupon illegally requires consumers to use the entire groupon in a single transaction, or else lose any remaining balance.

The proposed representative plaintiff, Hitendra Patel, is a Toronto resident who purchased a $25 groupon for $50 worth of merchandise at the Gap in the fall of 2010. He tried to use the groupon in late November 2010, but was told the groupon had "expired" and could not be redeemed.

None of the allegations has been proven in court.

Mr. Patel has retained the Toronto law firm of Sack Goldblatt Mitchell LLP to bring the claim. Sack Goldblatt Mitchell is also counsel in a number of other large class action lawsuits.

A website has been established with more information about the claim: www.grouponclassaction.ca. Consumers who believe they may have a claim against Groupon can register through the website to receive more information about the class action, including updates about the claim's progress.

SOURCE Sack Goldblatt Mitchell

For further information:

Louis Sokolov at: 416.979.6439.

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Sack Goldblatt Mitchell

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