Groupon adverts breach ASA code

Groupon has been rapped over the knuckles again by the Advertising Standards Authority (ASA) for misleading customers.

The advertising watchdog has had to take Groupon, the voucher-selling company, to task before after complaints from customers. The advertising watchdog said that, since March, it had made five adjudications against the company for breach of the code that covers print adverts; the UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing (CAP Code).

The latest of Groupon’s ads to fall foul of the CAP Code, which the ASA enforces concerned dental treatment.

The ASA said an advert for a voucher for teeth bracing and whitening was misleading. A voucher costing £98 was offered in order to get a £1,650 discount on the dental treatment.

But the advert failed to make it clear the customer would have to pay the remaining balance due for the £3,500 treatment. This detail was hidden away in the small print.

However the ASA said that despite having to make adjudications, it pointed out that it had been able to informally resolve 24 cases against the company.

"While it is far from ideal to see any advertiser break the rules, the number of breaches of the Advertising Code by companies offering discount vouchers should be taken in context of the thousands of ads they produce each year," the ASA said in a statement.

In its defence Groupon said that it did not dispute that there was a significant amount to pay in addition to the £98, but believed that an average consumer would not be misled by the advert. It also said that it worked closely with the ASA and other regulatory organisations to ensure its deals adhered to regulations.