People have reported CityDeal, a Groupon subsidiary, to the Finnish Consumer Agency for exaggerated deals and false marketing—problems which have also surfaced in other countries where the company runs sites.
“We’ve received around 60 complaints from consumers,” says Hertta Hartikainen, a lawyer with the Finnish Consumer Agency.
This isn’t the only problem facing CityDeal. The company has also run into trouble with Finland’s health watchdog Valvira for illegal marketing of electronic cigarettes. CityDeal did not stop advertising e-cigarettes last fall after being reprimanded by officials.
Group buying sites like Groupon send daily discount deal emails to subscribers and profit by taking a cut of what people pay merchants.