A greater web marketing success than a real-terms financial one, at least as far as its critics are concerned, Groupon has nonetheless built a big reputation in a relatively short space of time. However that reputation is coming under new scrutiny in the UK, as the Advertising Standards Authority has referred the web-firm to the Office of Fair Trading for repeated breaches of the advertising code.  

The ASA has upheld 11 complaints against Groupon in 2011, and has also informally settled a further 37. The most recent bout of censure came last week, when Groupon was ticked off for a web marketing email offering cosmetic surgery if customers booked within 24 hours.

According to the ASA, the ‘very limited time in which consumers had to buy the voucher pressured consumers into making a decision to purchase cosmetic surgery.’ And with complaints having also been received about Groupon exaggerating savings from deals and failing to conduct promotions fairly, the ASA has decided the time is right to take action.

Said the ASA in a statement: ‘It is in the public interest that we refer the matter to the OFT, the OFT being better placed to address any underlying issues concerning Groupon’s trading practices generally.’

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