Last month, Jason Sandford wrote an article about the national service coming to town ("Will Groupon Deals Hurt Asheville's 'Buy Local,'" Jan. 24 Asheville Citizen-Times. "Jodi Rhoden’s business picked up as soon as her Groupon deal hit the Internet. Users of the daily deal website could spend $10 to buy a coupon worth $20 of made-from-scratch treats at Rhoden’s bakery, Short Street Cakes," Sandford wrote.
According to its website, "Groupon negotiates huge discounts — usually 50-90% off — with popular businesses. We send the deals to thousands of subscribers in our free daily email, and we send the businesses a ton of new customers. That's the Groupon magic."
But "there's trouble in paradise," Butcher writes at mobilemarketer.com: "The most recent lawsuit against deal-of-the-day service Groupon Inc. could have a negative impact on the growth of local mobile advertising and couponing.
"Mobile coupons have proven to be an effective tool for brands and retailers, and their popularity among consumers continues to grow, with Groupon’s successful model Exhibit A. However, there is trouble in paradise, as lawsuits have alleged that Groupon and its retail clients issue “gift certificates [that] are sold and issued with expiration dates that are deceptive.”
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