Groupon (NASDAQ:GRPN) is a shareholder’s nightmare. Before going public, the company’s accounting practices caught the SEC’s attention. (Apparently, that’s what happens when you invent new accounting terms.) Now, the daily deal site is pissing off merchants.
Well, let me be clear: Groupon is bothering only merchants who don’t like the threat of getting sued in class actions. Andrew Mason et al must assume that’s a small number of people, but Amazon (NASDAQ:AMZN) CEO Jeff Bezos knows those are a lot of merchants to steal from Groupon. And Groupon merchants can make their use of the site as ephemeral as the morning dew.
Here’s the embarrassing email Groupon was forced to send to merchants:
You be the judge. Scary? Sure isn’t something I want to see as a former Groupon merchant. At the very least, I’ll be thinking long and hard before working with them again in the future.