Groupon's Expiration Dates May Violate State Law

The business practice of the online coupon company "Groupon" are being scrutinized by state Attorney General George Jepsen.

Jepsen contacted the chief executive of the Chicago-based company asking it to explain the terms under which Groupon may be used by consumers.  

“It appears that what Groupon Inc. sells or offers may fall within the definition of a gift certificate under Connecticut law,” Jepsen said in a statement. Connecticut law prohibits gift certificates from being sold or issued subject to an expiration date.

Connecticut may be the first state to raise questions about the Groupon sales, although many states have laws prohibiting or limiting gift card expirations. A number of private civil suits have been filed nationally challenging the expiration dates of gift certificates.

Groupon was asked to provide the information to the attorney general's office by early next month.