March 29, 2011
Partner Gonzalo E. Mon was quoted in the SmartMoney
article, "10 Things Daily Deal Sites Won't Say." The article discussed the common misconceptions and false representations often advertised by daily deal sites to consumers. One of the most common misconceptions involves determining whether the deals offered by such sites fall into the category of coupon or gift card. This difference has led to three class-action lawsuits this year, involving the sites Groupon and LivingSocial, that allege the companies' policies run afoul of federal and state gift card laws.
"It's unclear whether deal site offers are more coupon or gift card," said Mr. Mon. In the suit against LivingSocial, it was alleged that the site didn't adhere to Washington state law requiring cash refunds for cards valued at $5 or less. "In any event, that's good reason to scroll through your 'expired deals' queue," he said.