The Advertising Standards Authority (ASA) has filed complaints against daily deals company, Groupon UK, at the Office of Fair Trading (OFT) regarding its mode of operation and functioning.
OFT has confirmed that, from the month of July a secret investigation has been conducted on Groupon UK. Groupon UK is a unit of Groupon Inc. which is based in US and floated last month in New York.
OFT stated that, "The opening of this investigation follows complaints the OFT has received in relation to Groupon's trading practices."
Groupon spokeswoman confirmed that this company is fully cooperating with the investigation for ensuring that the consumer's rights are protected.
The spokeswoman said, "Groupon constantly strives for business practices that are in the best interest of consumers. We are constantly evolving business process to ensure customers receive the best possible experience at the highest standards," reported TVNZ.
On the other hand, ASA revealed that they have formally investigated as well as upheld various complaints against Groupon's UK unit's advertising strategy on 11 occasions and also it has informally resolved around 37 cases.
ASA also confirmed that they have "referring complaints which specifically concerns" failure of Groupon to conduct various promotions fairly, for example lack of clarification of terms and conditions, exaggerated saving claims and also failure in giving evidence regarding availability of offers.