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(Sharecast News) - The Competition and Markets Authority said on Monday that discount voucher company Groupon could face court action if it does not improve the way it treats customers.
An investigation launched by the CMA into Groupon in April found that the business does not always provide customers with the refunds and other forms of redress, such as replacement items, to which the watchdog considers they are legally entitled.

In cases where customers have not been provided with the goods or services that they paid for, they are sometimes only offered Groupon credits rather than refunds.

The CMA also expressed concerns that the company is failing to ensure that vouchers can always be redeemed within the advertised periods; descriptions of goods and services are accurate; products are in stock and delivered within the advertised timeframes; items are of a satisfactory quality; and customer service is satisfactory when customers contact them about issues.

CMA chief executive Andrea Coscelli said: "More people than ever are shopping online, especially over the last year. It is therefore essential that online businesses treat customers fairly and refund them money where due under consumer law.

"Groupon must swiftly step up and do right by its customers if it wants to avoid court action."

Groupon can now respond to the concerns outlined in the CMA's letter and avoid court action by signing further undertakings to the watchdog's concerns. This may include redress for consumers denied a refund and additional compliance monitoring.