A blogger for TechCrunch who has been investigating the business practices of daily deal sites like Groupon writes that the company may fall under statutes set forth in 27 states for the regulation of gift cards.
Drawing heavily on very recent work done by Harvard Business School researchers Benjamin Edelman and Paul Kominers on “Consumer Protection in Online Discount Vouchers,” TechCrunch blogger Rocky Agrawal outlines how Groupon vouchers may be considered gift cards under certain state laws, and makes the case for why they should be regarded as such before the law.
Other issues arise with Groupon vouchers, including some responsibilities that fall directly on the merchant. When calculating sales tax, should business owners charge a percentage of the bill after the voucher was applied? Or should they calculate from the total face value of the transaction? Or from the total amount the consumer paid?
Read More at TechCrunch.