Why won’t Groupon refund me? The restaurant closed!

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By Christopher Elliott

in this case: A Groupon voucher dilemma

in this case

  • A reader discovers her Groupon voucher is useless because the restaurant has permanently closed, so she asks for a refund.
  • But there’s a shocking catch that makes her case seem impossible: The voucher expired more than a decade ago.
  • Find out if Groupon holds firm to its expiration date policy or if there’s any hope for a refund on a ten-year-old purchase.

Sofya Mumford’s $65 Groupon voucher is worthless after the restaurant goes out of business. Why won’t the company refund her money?

Question

I bought a voucher through Groupon for a restaurant in Minneapolis. The restaurant closed before I could use the voucher. I asked Groupon for a refund but it refused and instead gave me $65 in Groupon Bucks, which I can use for a new Groupon purchase. The reason: The original credit card I used to purchase the voucher had expired, and Groupon will only refund to the original form of payment.

I don’t want Groupon Bucks —  I want a refund. Can you help me? — Sofya Mumford, Lutz, Fla.

Answer

Groupon should have refunded you for the voucher. When a merchant closes, Groupon’s terms say that you get a refund if the restaurant closes within three days of your purchase. We’ve had several cases where Groupon defaults to issuing credits, which is understandable — it’s better for Groupon if it can keep your money. (It’s understandable: Customers often fail to redeem the vouchers, which means the company gets to keep their money.) By the way, if Groupon won’t listen, you can always contact one of its executives. I publish the names, numbers and email addresses of the Groupon customer service managers on my consumer advocacy site, Elliott.org.

But hang on. What was missing from your initial query were specifics. When did you buy the voucher and when did you ask for a refund? I checked with Groupon and it filled in a few gaps. Your voice matters: A Groupon voucher dilemma

Your voice matters

Sofya Mumford’s case brings up a tricky question: what happens when a voucher is so old, the business it was for no longer exists? Her decade-old voucher was worthless, but Groupon still offered a resolution. This sparks a debate about expiration dates and consumer responsibility.

  • What’s the oldest unused gift card or voucher you’ve ever found, and was it still valid?
  • Should the value of a voucher for a specific business ever expire, especially if the business closes?
  • Considering the voucher was more than 10 years old, was Groupon’s initial offer of store credit a fair resolution?

The company says you bought the voucher more than a decade ago, and it expired in 2013. That means you were outside of the refund terms and cut off date. Groupon offered a refund in the form of Groupon Bucks with an additional goodwill gesture of $10. 

“Unfortunately, a direct refund was not available due to the original payment card expiring in 2015,” a representative told me.

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This additional perspective changes our approach to your case. Given how much time had elapsed, an offer of Groupon Bucks seems fair.

You could have prevented this by acting sooner. Groupons often have short refund windows, so always document issues immediately and escalate early. Don’t wait more than 10 years, because the business might not still be there.

Since you lived in Florida at the time of your purchase (even though the restaurant was in Minnesota), your purchase would be covered under Florida’s Deceptive and Unfair Trade Practices Act, which prohibits companies from misrepresenting the availability of refunds. But I see no misrepresentation here. Groupon can’t guarantee a restaurant will be in business in the future. If it could, it wouldn’t be selling vouchers — it would have moved on to something more lucrative.

Disputing the charge with your credit card company within 60 days under the Fair Credit Billing Act might have also worked, even with an expired card (issuers can often route refunds to new accounts). But your chargeback would have been a nonstarter because of the length of time elapsed.  Top comment: Groupon sold a voucher for a closed restaurant

🏆 YOUR TOP COMMENT
I once bought a voucher from groupon for a restaurant that was already closed at the time I made the purchase. I found out several days later when we tried to go to the restaurant. Groupon refused to give me a refund and only offered credit. They finally relented and gave me a refund after I kept pressing and threated to request a chargeback. That was the last time I used groupon.
— Joe X
Read more insightful reader feedback. See all comments.

Your case is a reminder that you don’t have forever to resolve a consumer problem. Businesses can go under. My advocacy team and I have seen this with gift cards for restaurant chains that file for bankruptcy, often taking the value of those cards with them. Bottom line: Nothing lasts forever.

Groupon was under no obligation to return your money since you were outside the refund window. But the company agreed to refund you $65 as a goodwill gesture. Infographic: A guide to vouchers and gift cards

How to use vouchers and gift cards

A guide to making the most of your deals

1

Read the fine print before you buy

Always check the terms and conditions for expiration dates, refund windows, and any restrictions. State laws on expiration can vary, but promotional value often has a time limit.

2

Use your voucher or gift card quickly

Don’t let it gather dust in a drawer or your inbox. The longer you wait, the higher the risk that you’ll forget it, the business will close, or the terms will change.

3

Act fast if a problem arises

If you find out a business has closed or won’t honor your voucher, contact the issuing company (like Groupon) immediately. The clock for a potential refund is always ticking.

4

Know the limits of a refund

If a voucher is long expired, a cash refund is highly unlikely. The company may not even be able to refund to an old, expired credit card. In these cases, store credit may be the only option.

5

A polite request can go a long way

Even if you are outside the refund window, companies will sometimes offer a credit or partial refund as a goodwill gesture if you explain the situation politely.

Key takeaways

Read the terms

The fine print is your guide to your rights.

Use it or lose it

The value of a voucher can disappear over time.

Don’t wait to complain

Time is your enemy in a consumer dispute.

Goodwill is valuable

A polite request can sometimes save the day.

Executive Contacts: Groupon

Is your Groupon complaint going nowhere?

When you’re only being offered Groupon Bucks for a problem that deserves a real refund, you need to talk to a real person. We’ve got the direct contacts for the Groupon executives. Get the Groupon executive contacts

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Should vouchers ever be allowed to expire?
Related reads: Groupon voucher dilemma What you’re saying

What you’re saying

This case sparked a rare moment of unity in the comments, but not in the way you might expect. The overwhelming majority of you sided with Groupon, arguing that a decade-old, expired voucher was not the company’s responsibility.

  • A decade is too long

    Readers like Ben and GradUT were clear: The customer’s claim was “ridiculous.” You felt that waiting more than 10 years to use a voucher was negligent, and that Groupon’s offer of credits was exceptionally generous, not required.

  • Use it or lose it

    Many of you shared a practical piece of advice. As Frank Loncar noted, restaurants often have short lifespans. You argued that the responsibility is on the consumer to use vouchers promptly before the business closes or the offer expires.

  • There’s a difference…

    Top commenter Joe X and others drew a sharp distinction between this case and a more legitimate grievance: when Groupon sells a voucher for a business that is already closed. In those cases, you agree that a full cash refund is the only acceptable resolution.

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Christopher Elliott

Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. He's the author of numerous books on consumer advocacy and writes three nationally syndicated columns. He also publishes the Elliott Report, a news site for consumers, and Elliott Confidential, a critically acclaimed newsletter about customer service. If you have a consumer problem you can't solve, contact him directly through his advocacy website. You can also follow him on X, Facebook, and LinkedIn, or sign up for his daily newsletter.

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