AG Questions Groupon's Expiration Date Policy

State law prohibits expiration dates on gift certificates.

Connecticut law prohibits expiration dates on gift certificates and Attorney General George Jepsen is questioning whether a popular daily deal Web site is violating state law by setting deadlines to redeem the deals.

Jepsen has asked Chicago-based Groupon to provide information by early next month about terms under which Groupons are sold to and redeemed by consumers, how much revenue those sales generate in Connecticut and how frequently expiration dates are imposed on the sale of goods and services at a discount.

“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 said in a statement released on Thursday. “I have not prejudged Groupon or reached any conclusions. I am hopeful that any issues can be resolved through discussion and cooperation.”

"We look forward to cooperating with Connecticut’s attorney general in helping him and his team understand our business model as it relates to the many Connecticut merchants and consumers who use our service," Bradford Williams, vice president of Global Communications at Groupon, said in a statement on Thursday.

The company addressed expiration dates on a blog post from 2010.

“When a Groupon expires, customers can still redeem for the price they paid for the period of time defined by state law,” Groupon posted in its blog. “We’re adding a clause to our terms of service stating that if for any reason a merchant refuses to honor an expired Groupon still valid under state law, we will refund that customer (we did that anyway, but now it’s in the terms of service).”

Several lawsuits have been filed regarding expiration dates. The most recent one to make national news was filed in March.

A Chicago man filed a lawsuit two weeks after his certificate to WhirlyBall expired because he did not get a chance to use it, the Huffington Post reports

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