Groupon has become an internet phenomenon. It's a simple idea: you register with the website then you receive news of the great daily deals in your area. From restaurants to spa days and weekend hotel breaks, you can buy a Groupon voucher to get them all at incredibly reduced prices. If enough people sign up to a deal, Groupon uses it's group buying power to get you the discount.
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Thousands are signing up every week, making Groupon one of the fastest growing companies in the world. But the number of complaints is also growing. Robyn Carter from the West Midlands spent £87 on Groupon vouchers for a spa experience. But when she contacted the spa, Shear Success, to make an appointment, the problems started.
(Do you have something to say about this story? Tell us what you think by emailing us here. Don't forget to include 'Groupon' in the subject line. Watchdog will publish a selection of viewers' comments underneath each story, both throughout and after the programme is on air. Please remember to include your name as you would like to see it published).
"I called the spa on the Monday and I couldn't get through because it was just constantly engaged," says Robyn. "So I called them again on the Tuesday and they told me they were fully booked."
Shear Success told Robyn that they had been overwhelmed with demand, and simply couldn't cope with the number of Groupon voucher holders trying to make bookings. She was put on a waiting list, but was told that she was just one of hundreds of Groupon customers trying to book, and that her chances of getting an appointment were slim. Robyn complained to Groupon and received a refund.
Shear Success's owner Maureen says that Groupon told her to expect around three hundred extra customers as a result of their promotion. In fact around nine hundred Groupon vouchers were sold. Although the voucher is valid until July, Maureen says it's unlikely that she will have enough time to see all those extra customers.
"You've got a lot of frustrated clients ringing who have spent good money on a voucher and they're obviously very disappointed. But as a small business with only two treatment rooms, it's impossible to get nearly nine hundred people in in the space of four months."
Groupon says that Shear Success never asked it to limit the number of vouchers to three hundred. It also says that it warned the spa to expect a large number of calls once the offer had appeared.
Groupon's popularity is growing - and it's easy to see why. It's glossy website offers huge bargains at the click of a button. But with a clock counting down, you have to make a quick decision on whether to buy the voucher, and that doesn't give you much time to check out the company involved.
But Ben Schiffer from London wishes he'd done just that. Last October he booked a cut price colonic irrigation session using vouchers - at just £39, he thought it sounded like a bargain. But despite repeated calls to the clinic, he couldn't get through. And there was a good reason:
"One day I was just by chance on Harley Street where the clinic is meant to be, and it wasn't there. So I emailed Groupon, and they said we can't give you a refund but we can offer you credit for more Groupon vouchers."
Ben tried using Groupon again. He booked a professional deep clean for his house - but after booking on the cleaning company's website and leaving his details, he's heard nothing back.
We've been told about other disappointing deals from Groupon, including a steak dinner for two - at a restaurant that's been known to run out of steak. Or the hotel room and massage offer that was taken up by almost fifteen hundred people, including Gary Bickerstaffe. When the hotel couldn't cope with the number of reservations, Groupon ended up refunding his voucher.
Then there's the £50 hotel voucher for just £20 - except that Groupon failed to mention the extra £5 administration fee the hotel booking site charges on top. It seems that for some customers, Groupon's knock down prices are actually more of a let down.
Groupon company response to BBC Watchdog:
Groupon is a company that prides itself on giving customers exceptional value for money. We are sorry that in these cases we haven't lived up to our normal high standards. All three individuals have already received a full refund, and our Managing Director, Christopher Muhr, has personally apologised to each of them.
Groupon is a new and rapidly growing business, and we work very hard to get things right. In the past year, we have issued 3.6 million vouchers to UK consumers, and more than 96% of them have worked as they should. So, whilst we get it right in the overwhelming majority of cases, we want to improve even further.
Groupon saves customers up to 90% off high street prices. That is why 8 million people have signed up to receive our free daily emails outlining the latest deals. In the past year we have saved UK consumers more than £230 million. And every Groupon voucher is backed up by the Groupon promise - if you feel Groupon has let you down, we will refund your money.
95% of our customers have used us before - that is a tremendous vote of confidence from UK consumers. We are determined that as we enter our second year of business, Groupon will provide an even better service, and give ever more UK consumers access to savings of an average 70% off high street prices.
Mr Schiffer
In the case of the clinic that ceased trading, we should have refunded Mr Schiffer right away. However, due to a clerical error this didn't happen - the business told us that Mr Schiffer had received his treatment. We have now refunded Mr Schiffer in full. Mr Schiffer did not contact us about the cleaning company, but we have now refunded this purchase as a gesture of good will.
Ms Carter
We are sorry that Ms Carter was unable to use the voucher she had purchased. Ms Carter had an immediate and full refund processed on the day she requested one.
Mr Bickerstaffe
Mr Bickerstaffe was unhappy that he couldn't book with the hotel within the first few hours of receiving his voucher, and so we refunded his money.
Shear Success Spa
We work closely with partner businesses to agree the number of vouchers that should be sold. Shear Success Spa didn't ask us to restrict the number of vouchers, or tell us there was a problem for more than a month. All businesses receive full details of the provision they should make for handling high call volumes on the first day. In addition, Shear Success Spa was contacted on the day of the deal to check they were comfortable with the high sales. We are now working with Sheer Success Spa to ensure that all customers get either a suitable appointment or a full refund.
The Steak Restaurant
The restaurant experienced a short term supply issue that lasted 4 days. During that period, all customers were advised of the situation when booking and offered a free starter. Within 4 days they had sourced a second supplier, and now have steak available for all!
Watchdog viewer responses:
We have used Groupon many times now and had a good experience every time. Eating out, fun events, boat trip. We don't have any fears about using it again.
David Heath
I bought a Tapas deal and several dates were specified that I couldn't book on. I finally called to book and was told were again fully booked but then was told that they didn't actually do tapas all the time only on a Thurs or Fri evening yet their website said 12-2 and 5-9.30 every day. The owner admitted he was onto a lost leader and could not offer me the deal of a meal for £20 instead of £60 but could only offer me £20 off a meal. I complained to GRoupon who were not very sympathetic and very reluctantly would only give me £20 credit and not a refund, so I still have spend it with them!
Katy in Leicester
I have bought two Groupon vouchers so far and have not experienced a problem. I am a very happy customer and hopefully this will continue when I buy more offers.
Thanks
Joanne
Groupon - deal or no deal?
In order to see this content you need to have both Javascript enabled and Flash installed. Visit BBC Webwise for full instructions. If you're reading via RSS, you'll need to visit the blog to access this content.
Thousands are signing up every week, making Groupon one of the fastest growing companies in the world. But the number of complaints is also growing. Robyn Carter from the West Midlands spent £87 on Groupon vouchers for a spa experience. But when she contacted the spa, Shear Success, to make an appointment, the problems started.
(Do you have something to say about this story? Tell us what you think by emailing us here. Don't forget to include 'Groupon' in the subject line. Watchdog will publish a selection of viewers' comments underneath each story, both throughout and after the programme is on air. Please remember to include your name as you would like to see it published).
"I called the spa on the Monday and I couldn't get through because it was just constantly engaged," says Robyn. "So I called them again on the Tuesday and they told me they were fully booked."
Shear Success told Robyn that they had been overwhelmed with demand, and simply couldn't cope with the number of Groupon voucher holders trying to make bookings. She was put on a waiting list, but was told that she was just one of hundreds of Groupon customers trying to book, and that her chances of getting an appointment were slim. Robyn complained to Groupon and received a refund.
Shear Success's owner Maureen says that Groupon told her to expect around three hundred extra customers as a result of their promotion. In fact around nine hundred Groupon vouchers were sold. Although the voucher is valid until July, Maureen says it's unlikely that she will have enough time to see all those extra customers.
"You've got a lot of frustrated clients ringing who have spent good money on a voucher and they're obviously very disappointed. But as a small business with only two treatment rooms, it's impossible to get nearly nine hundred people in in the space of four months."
Groupon says that Shear Success never asked it to limit the number of vouchers to three hundred. It also says that it warned the spa to expect a large number of calls once the offer had appeared.
Groupon's popularity is growing - and it's easy to see why. It's glossy website offers huge bargains at the click of a button. But with a clock counting down, you have to make a quick decision on whether to buy the voucher, and that doesn't give you much time to check out the company involved.
But Ben Schiffer from London wishes he'd done just that. Last October he booked a cut price colonic irrigation session using vouchers - at just £39, he thought it sounded like a bargain. But despite repeated calls to the clinic, he couldn't get through. And there was a good reason:
"One day I was just by chance on Harley Street where the clinic is meant to be, and it wasn't there. So I emailed Groupon, and they said we can't give you a refund but we can offer you credit for more Groupon vouchers."
Ben tried using Groupon again. He booked a professional deep clean for his house - but after booking on the cleaning company's website and leaving his details, he's heard nothing back.
We've been told about other disappointing deals from Groupon, including a steak dinner for two - at a restaurant that's been known to run out of steak. Or the hotel room and massage offer that was taken up by almost fifteen hundred people, including Gary Bickerstaffe. When the hotel couldn't cope with the number of reservations, Groupon ended up refunding his voucher.
Then there's the £50 hotel voucher for just £20 - except that Groupon failed to mention the extra £5 administration fee the hotel booking site charges on top. It seems that for some customers, Groupon's knock down prices are actually more of a let down.
Groupon company response to BBC Watchdog:
Groupon is a company that prides itself on giving customers exceptional value for money. We are sorry that in these cases we haven't lived up to our normal high standards. All three individuals have already received a full refund, and our Managing Director, Christopher Muhr, has personally apologised to each of them.
Groupon is a new and rapidly growing business, and we work very hard to get things right. In the past year, we have issued 3.6 million vouchers to UK consumers, and more than 96% of them have worked as they should. So, whilst we get it right in the overwhelming majority of cases, we want to improve even further.
Groupon saves customers up to 90% off high street prices. That is why 8 million people have signed up to receive our free daily emails outlining the latest deals. In the past year we have saved UK consumers more than £230 million. And every Groupon voucher is backed up by the Groupon promise - if you feel Groupon has let you down, we will refund your money.
95% of our customers have used us before - that is a tremendous vote of confidence from UK consumers. We are determined that as we enter our second year of business, Groupon will provide an even better service, and give ever more UK consumers access to savings of an average 70% off high street prices.
Mr Schiffer
In the case of the clinic that ceased trading, we should have refunded Mr Schiffer right away. However, due to a clerical error this didn't happen - the business told us that Mr Schiffer had received his treatment. We have now refunded Mr Schiffer in full. Mr Schiffer did not contact us about the cleaning company, but we have now refunded this purchase as a gesture of good will.
Ms Carter
We are sorry that Ms Carter was unable to use the voucher she had purchased. Ms Carter had an immediate and full refund processed on the day she requested one.
Mr Bickerstaffe
Mr Bickerstaffe was unhappy that he couldn't book with the hotel within the first few hours of receiving his voucher, and so we refunded his money.
Shear Success Spa
We work closely with partner businesses to agree the number of vouchers that should be sold. Shear Success Spa didn't ask us to restrict the number of vouchers, or tell us there was a problem for more than a month. All businesses receive full details of the provision they should make for handling high call volumes on the first day. In addition, Shear Success Spa was contacted on the day of the deal to check they were comfortable with the high sales. We are now working with Sheer Success Spa to ensure that all customers get either a suitable appointment or a full refund.
The Steak Restaurant
The restaurant experienced a short term supply issue that lasted 4 days. During that period, all customers were advised of the situation when booking and offered a free starter. Within 4 days they had sourced a second supplier, and now have steak available for all!
Watchdog viewer responses:
We have used Groupon many times now and had a good experience every time. Eating out, fun events, boat trip. We don't have any fears about using it again.
David Heath
I bought a Tapas deal and several dates were specified that I couldn't book on. I finally called to book and was told were again fully booked but then was told that they didn't actually do tapas all the time only on a Thurs or Fri evening yet their website said 12-2 and 5-9.30 every day. The owner admitted he was onto a lost leader and could not offer me the deal of a meal for £20 instead of £60 but could only offer me £20 off a meal. I complained to GRoupon who were not very sympathetic and very reluctantly would only give me £20 credit and not a refund, so I still have spend it with them!
Katy in Leicester
I have bought two Groupon vouchers so far and have not experienced a problem. I am a very happy customer and hopefully this will continue when I buy more offers.
Thanks
Joanne
Groupon - deal or no deal?
