The Office of Fair Trading (OFT) has launched an investigation into Groupon after the firm broke UK advertising regulations 48 times in 11 months. Groupon, which offers daily deals on products from cupcakes to car hire, has been referred to the OFT by the Advertising Standards Authority (ASA). However, the OFT says it has been investigating Groupon in secret since July. The investigation became public after the ASA voiced its concerns. A source from A Vision Network, a new and exciting marketing company based in Cardiff has commented on this, saying “I understand maybe one or two accidental mishaps over 11 months but forty-eight is a large amount.”The OFT launched its own enquiries into Groupon to see if the company was "complying with consumer protection legislation, including in relation to certain of its advertising practices". The advertising watchdog has made 11 formal rulings of code breaches against Groupon, details of which have been published. Groupon promises companies to bring them new customers, by offering sharp discounts on products and services - in the hope that new customers will return regularly. A Vision Network is a company dedicated to hard work, passionate about high standards and excited for what 2012 holds for the company. The Managing Director of A Vision Network, when asked what he thought of the investigation, has said, “I don’t think Groupon had its customers in mind. It is of the upmost importance that customers are put first; this is what I pride my company in. Our customers!”
The concept, however, can go wrong. In November, a Berkshire cake maker said it almost went bust after it offered a discount on Groupon, but thousands more vouchers were redeemed than it expected. Need a Cake offered discounts of 75% on cupcakes on the Groupon website and was unable to meet the sudden increase in demand. Owner Rachel Brown told the BBC: "Without doubt, it was my worst ever business decision." Managing Director of A Vision Network has said, “For a business to think it ‘almost went bust’ after advertising on Groupon is extreme. Hopefully the investigation can remedy businesses being hurt by Groupon.”
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