Patel v. Groupon Inc.
Consumer Class Action
Update: October 29, 2013 – This class action has been settled:
The settlement of this class action was approved by the Superior Court of Justice on October 29, 2013.
The settlement agreement provides that class members can continue to redeem their vouchers at the purchase price or, if redemption is not possible, they can recover their money back from a settlement fund. Groupon will deposit $535,000 into the settlement fund for eligible claimants; counsel fees of $235,000 and administration fees of $100,000 will be deducted from the fund, leaving about $200,000 for class member claimants. Any unclaimed balance will be returned to Groupon.
Update: July 2013:
The parties have entered into a tentative settlement, which must be approved by the Ontario Superior Court of Justice. An English copy of the Notice for Approval of the Proposed Settlement is here, and a French version of the Notice is here.
The parties attended before the Court on July 2, 2013, to seek the approval of the proposed settlement of the action. The Court advised that it required additional information regarding the basis for the settlement in order to determine whether the settlement was fair and reasonable and should be approved. The parties will provide this information to the Court, and the Court will then consider the approval request.
What the class action is about:
We represent the plaintiff in a class action against Groupon Inc. (“Groupon”) in Ontario. The lawsuit was commenced 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 representative plaintiff:
The 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. The lawsuit alleges that Mr. Patel tried to use the groupon in late November 2010, but was told the groupon had “expired” and could not be redeemed.
Class action website:
A website for this class action has been established with more information about the claim. The statement of claim can be viewed on that website. 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. [Note: this website was deactivated following the conclusion of the class action]