AG Madigan Will Figure Out If Groupon Breaks Laws

By Samantha Abernethy in News on Jul 17, 2011 8:00PM

Illinois Attorney General Lisa Madigan is going to take a closer look at Groupon's policy for expiring deals after Connecticut's attorney general questioned whether the company breaks laws mandating that gift cards be valid for at least five years after purchase. Crain's writes:

“All we're doing is having a conversation to get a sense of how they operate," a spokeswoman said. "We've had no consumer complaints and no indication any Illinois consumers have had any issues with the company."

Groupon has already faced a few lawsuits as a result of their expiration policy.The core issue: Is Groupon a coupon or a gift card? Some merchants have extended the deals past their expiration date, which is usually six months to a year after the purchase. That sounds like a coupon. We've also written before about what happens to Groupons when their merchants die: refunds. That maybe sounds more like a gift card. It seems like it doesn't fit perfectly into either category, so perhaps it's time to make a new one.