Online daily deal giant, Groupon, is under pressure by Congress to reconsider its privacy policies. In early July, the coupon provider announced plans to share more information about its 80 million+ users with merchants. The website currently collects its subscribers' contact information, transaction data, online relationships, web surfing habits and geo-location information. Groupon's announcement caused Congressional representatives Joe Barton of Texas and Edward Markey of Massachusetts to investigate the site's data collection procedures.
In a letter to Groupon, Barton expressed concern about the issue of customer privacy. "While I do understand that companies participate in these practices to offer better services, I strongly believe that Americans should always be informed of how their personal information is being used and be given control of when their information is shared."
In a subsequent statement, Markey said: “Groupon may be collecting personal information such as phone numbers, emails and location data from mobile devices. This type of sensitive data, especially if it belongs to children and teens, requires special protection. We must ensure that consumer information is safeguarded, with clear, distinct permissions and the ability for customers to 'opt-in' before their information is shared with third parties.”
Besides the concern over privacy policy, Groupon is already in another legal fix. Groupon is also being sued over deal expiration dates: whether or not they are classified under ‘gift certificates’ and should have an expiration date at least 5 months from the time of sale. A new class-action lawsuit filed on Tuesday is seeking a preliminary injunction to stop Groupon from selling deals.
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