Bad week for Groupon – UK says ad exaggerated savings

The Advertising Standards Authority STRIKES AGAIN!

The ad on the Groupon MyCityDeal site offered customers a four-course meal for two with a bottle of wine, or two pints of any alcoholic or soft drink, at the Wagon and Horses restaurant for £24, rather than £92.

Groupon claimed this was a 74% discount, however, one customer complained the number was exaggerated.

In its defence, Groupon said the calculation of the offer price was made on the basis of the most expensive items on the menu at the time it signed the deal with the restaurant.

The ad’s small print, which had been incorporated following a similar ASA adjudication last month, said the discount is based on "highest price".

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Groupon tries to spin away from its Super Bowl ad

After offending pretty much everyone – including the Chinese government – with its horrible ad which said, “You can’t save Tibet but we can save you money at a Tibetan restaurant, Groupon is hoping spin will save it from having to say it’s sorry.

Groupon founder Andrew Mason wrote in his blog:

"We would never have run these ads if we thought they trivialized the causes — even if we didn’t take them as seriously as we do, what type of company would go out of their way to be so antagonistic?

A really, really stupid one. That’s what type.

Kudos to Groupon for so quickly going from a neutral brand to one with significant negatives. Not easy to do when your sole public purpose is to help people save money. The ad also pulled off the unique trick of being the first thing that both the Tibetan exiles and Chinese government have ever agreed on.

Here’s my favorite piece of fallout: Even the owner of the Himalayan restaurant mentioned in the ad, is pissed at them.