Groupon pledges to offer refunds and better service after CMA inquiry

Discount voucher firm Groupon has agreed to a raft of customer service changes - including refunds - after warnings from the competition watchdog.

The Companies and Markets Authority (CMA) said Groupon had also pledged to improve the accuracy of the descriptions of offers on its website

The CMA had told Groupon in August to improve the way it treated customers or face legal action.

The regulator began investigating Groupon UK in April.

Groupon's business offers groups of customers discounts and deals for a range of products and services.

In August, the CMA said it was particularly concerned about Groupon's response to customer complaints and its willingness to refund customers as they should under consumer protection law.

For example, in cases where customers had not been provided with the goods or services that they had paid for, they were sometimes only offered Groupon credits instead of refunds.

It was also worried the company was not making sure products were described accurately, or were in stock or delivered within promised dates.

The CMA said Groupon had now committed to improving its customer service, and to offer refunds to some customers who had not previously had this option.

A banner will be placed on the homepage of the Groupon website and app for the next 60 days outlining details on the availability of refunds and a new team will be set up to investigate deals when a certain number of customers get in touch with Groupon about their purchase

Andrea Coscelli, chief executive of the CMA, said: "So much of business relies on trust. It's essential that people shopping online receive what they ordered and are supported if things go wrong, quickly receiving any refund they are due.

"We welcome that Groupon has now committed to address concerns about customer service issues and ensure it is abiding by the law, so that people can feel more confident shopping online in the future."

In a statement, Groupon said it had worked "constructively" with the CMA throughout the consultation process.

It added it was "pleased to have resolved the matter and reached a mutually acceptable solution".