I couldn't resist any longer to write about it.
I don't watch Groupon's deals every day (as I wouldn't touch this company with a, you know). But when I watch their deals, my possibly trained eye is almost always noticing something very very fishy..
It was several months ago when they were selling cheap unbranded robotic vacuum cleaners like 'hot cakes' with 2 year warranty, but from a one-day company created a couple of days before the campaign and who has certainly disappeared by now into the void. I even wrote my full investigation report to TechCrunch, but they decided not to publish it. Yawn.
The same story was with foam mattresses before vacuum cleaners and the same ever-repeating story is going on right now which I am going to tell you about.
Why most of Groupon deals are scam? Because the discounts they claim they provide are almost always *not real*. Because the deals they offer are only plausible and way too often will result in not what should have been expected:
the hotels and resorts won't have any good dates available, salons will only offer you very inconvenient appointments, other businesses will treat you like cattle and Groupon does it best to cover their own lies.
So, what's going on?
Yesterday (7 December, 2011) Groupon was selling "One (£12), Two (£20), or Three (£27) Shamballa Crystal Beaded Bracelets from Fashion Revenge (Up to 87% Off)" as a 'National deal' to all of the UK (http://www.groupon.co.uk/deals/national-deal/fashion-revenge/2011696).
Detailed description about this deal says:
"More About Fashion Revenge
Supplying a giant’s jewellery box of bracelets, earrings, necklaces, and rings to UK customers, Fashion Revenge in an online store that also boasts their own manufactured line of accessories. Keeping up-to-date with the modern world, the business keep customers informed on their globally sourced items on their blog, and through social networking sites."
Haha. What a pile of pathetic bullshit! An 'online store'!
I check domain WHOIS details to see:
Domain name:
fashionrevenge.co.uk
Registrant:
Fashion Revenge
Registrant type:
UK Individual
Registrant's address:
The registrant is a non-trading individual who has opted to have their
address omitted from the WHOIS service.
Registrar:
Webfusion Ltd t/a 123-reg [Tag = 123-REG]
URL: http://www.123-reg.co.uk
Relevant dates:
Registered on: 06-Dec-2011
Renewal date: 06-Dec-2013
Last updated: 07-Dec-2011
Domain was registered JUST DAY BEFORE the deal went live on Groupon website!
It's not just that 'Fashion Revenge' has thought the traffic might kill their main website and they opted for a satellite domain for this campaign. Nope, they registered their brand name 'FashionRevenge'.co.uk domain one day ago.
They have sold more than 15,000(!!) of these items.
(note that today this link is showing '9' items as sold and I am not sure why this is happening. It's either they don't want to display a real figure any longer or the deal has carried on to the next day and then met the total allocated reserve of items just after 9 more sales).Right now, today, Groupon is selling "£12 for £70 Towards Handbags and Accessories at Lilly's Little Luxuries (Up to 83% Off)" from http://www.lillyslittleluxuries.com.
How come, Groupon, yesterday you were having 'up to 87% off', and today it's just '83%'?? I feel for you, it must have been really hard to lower your mark.
So I do the same check and see the same story.
This domain was registered just a bit more in advance - on 25th of October. But I don't know if this is not the first time Groupon runs deals for this 'merchant'.
"Lilly's Little Luxuries" - with a slogan 'designed with you in mind'. Yeah, how pathetic, you must have a real skill designing your 'set ups' minding all the victims whom it will be ripping off..
And now, the culmination!
"Shamballa Crystal Beaded Bracelets" which just yesterday a one-day company 'Fashion Revenge' was selling!! Wait a minute, 'Lillys Little Luxuries' sells them for just £9.99! Yesterday Groupon 'helped' to sell them for £12 with "up to 87% off" discount.
Thank you very much Groupon!! I guess all unsuspecting 15,000+ people whom you sold this crap yesterday might be very interested to find this out.
I don't know why a 'fastest growing company in the world' would be doing something like that. It is apparent these deals are run by Groupon insiders, because how else their teams could have discovered these companies which haven't existed yesterday? How else they could have passed 'sane business checks' and allowed Groupon to write laudatory descriptions, pretending all these companies are in a long good trading stand?!
I can only think because they are well aware their days are counted and they will be the fastest dying company soon. And they want to grab whatever is possible before that. What a greedy bunch! Their business model seemed very promising if not only they started to abuse their customer's trust.
--KsA
PS: Important disclosure. I don't own Groupon stock and don't fucking plan to buy it neither in the next 72 hours nor anytime in my life.
