Groupon (GRPN) to Come Under Investigation in U.K. Over Ad Practices
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Rules are more like guidelines, right?
Not in the U.K., they aren't. According to The Guardian Friday, the U.K. Office of Fair Trading will open an investigation into Groupon (Nasdaq: GRPN) over allegations the company broke U.K. advertising practices.
U.K.'s Advertising Standards Authority claims Groupon broke the ad law about 50 times over the last 12 months, and referred the matter to the Office of Fair Trading.
The Guardian also said the Office actually launched its own Groupon investigation back in July, but the media has only been made aware of it today.
An example of breaking the ASA's regulation: a Groupon email which offered a discount on plastic surgery, which the Authority said "pressured" customers into making "life changing" decisions. Clearly plastic surgery isn't on the same par as half-off sushi, which also may be life altering in some respects.
After launching at $28 in early November, Groupon shares have "melted down" to below $20. Shares closed up 8.3 percent to $18.95 on Thursday.
Not in the U.K., they aren't. According to The Guardian Friday, the U.K. Office of Fair Trading will open an investigation into Groupon (Nasdaq: GRPN) over allegations the company broke U.K. advertising practices.
U.K.'s Advertising Standards Authority claims Groupon broke the ad law about 50 times over the last 12 months, and referred the matter to the Office of Fair Trading.
The Guardian also said the Office actually launched its own Groupon investigation back in July, but the media has only been made aware of it today.
An example of breaking the ASA's regulation: a Groupon email which offered a discount on plastic surgery, which the Authority said "pressured" customers into making "life changing" decisions. Clearly plastic surgery isn't on the same par as half-off sushi, which also may be life altering in some respects.
After launching at $28 in early November, Groupon shares have "melted down" to below $20. Shares closed up 8.3 percent to $18.95 on Thursday.
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