Breathe new life into your expired internet coupons

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This is more on the topic of false advertising and consumer protection, but i thought this was useful to share with everyone.

If you're like me you have at least a couple expired Groupons, Living Socials, BuyWithMes, Zozi, or any other coupon, voucher or redemption certificates laying around. You meant to use them, but you forgot, or had other plans, or weren't able to schedule an appointment before the expiration date.

Some of these, like Living Social, have text directly on the coupon that they are still good for at least the purchase price at the retailers.  Which is good if you're trying to convince a retailer that they should honor your clearly expired voucher. Others, like Groupon, have it in their terms of sale. But has anyone actually tried to redeem these expired vouchers? Do the retailers honor them?

Well... It turns out that in 2003 MA revised and broadened its gift certificate laws so that the definition now includes Internet coupons. MGL §255D.1 defines a "gift certificate" as "a writing [in] any … medium that evidences the giving of consideration in exchange for the right to redeem the … medium for goods, food, services, credit or money of at least an equal value."

The plain language of the statute considers redemption to "at least an equal value" of the purchase price; meaning that gift certificates that fall into this statute can be redeemable for more than their purchase price. This definition seems to include internet coupons.

AND...According to this definition the "gift certificate" refers to the full amount, not just the paid amount. The gift certificate is "usable in its face amount in lieu of cash in exchange for goods or services supplied by the seller."

So now what?
MGL chapter 200A.5D states that a "gift certificate ... sold or offered to be sold shall be valid for not less than 7 years after its date of issuance." So all of those old Groupons and Living Socials are really good for 7 years. Regardless of the expiration date and for the full amount.

But it doesn't stop there. MGL Chapter 266.75C further provides for fines of those who sell certificates expiring less than 7 years and well as those who refuse to redeem them. "Whoever sells or offers to sell a gift certificate ... which imposes a time limit of less than 7 years within which such certificate may be redeemed, shall be punished by a fine of not more than $300. ... Whoever, after having sold a gift certificate refuses to redeem the certificate before it has reached the expiration date, shall be punished by a fine of not more than $300."


Even if you don't live in MA, your state's gift certificate law may cover internet coupons. If you're interested in more information, this recent article goes through an analysis of five areas where online discount voucher services risk falling afoul of applicable consumer protection law. Specifically, restrictions on discounts of alcoholic beverages, prohibitions on short voucher expirations, restrictions on disposition of “abandoned” property, assurance of consumers’ right to cash back, the need for correct tax treatment, redemption processes at risk of error and malfeasance, and a voucher service’s liability when merchants fall short.

Should you angrily storm into that Yoga Studio and demand that they honor your Groupon and then threaten them with fines? Probably not. I would try a more subtle approach by educating the merchant about the law and how it applies to internet coupons. As my old boss used to say "start with love." You'd be surprised what you can get. The whole point of these coupons is to introduce you to new businesses. The last thing they want to do is upset a new customer.

If that doesn't work I would try this letter writing tool, created by the authors of the article I mentioned above, and write a letter to the internet coupon provider. Groupon is known to issue refunds. I could not get a hold of Living Social, but you may have more luck.

If the letter writing tool does not work you may try other options detailed here. I suppose the severity of the action depends on how angry you are and how much you've paid for the coupon. A really good suggestion is to dispute the charge with your credit card issuer if less than 60 days have elapsed since the purchase. But it's unlikely that your coupon will expire in less than 60 days.

If the amount is significant you may also try small claims court (filing a complaint isn't free). A cause of action under Chapter 93A covers unfair or deceptive practices by an individual or a merchant. The plaintiff has to file a Demand Letter before filing the complaint, which can give the merchant/coupon provider an opportunity to negotiate and settle the claims out of court. This can help you fix the problem before you have to file the claim. 

But if the merchant does not make a good faith effort to respond within 30 days, it could subject it to triple damages and attorney’s fees. The letter should also explain the complaint and demand specific compensation for the damage caused. You can send the letter yourself, but you should carefully read the provisions or consult a lawyer before filing.