An Osaka Hair Salon is Claiming Over $200,000 in Damages From Groupon Japan

An Osaka hair salon that sold coupons through Groupon Japan is claiming that Groupon Japan misled them about the risks involved in using Groupon Japan's services.

The salon sold coupons through Groupon Japan that reduced the price of services including haircuts and hair colouring from 13200 yen to 2900 yen, including Groupon Japan's share (roughly $158 to $35 cdn at the current exchange rate). The salon was overwhelmed by coupon holders and claims that it had to bring in additional stylists to deal with the demand and could not make a profit on sales at the price set by the coupons. According to the salon, Groupon Japan misled them to believe that 20% of the coupon holders would not come to the store within the time limit placed on the coupons.

Groupon Japan denies the salon's claims and points out that the price and number of coupons sold were based on an analysis of the store's capacity and the available staff members. Additionally, Groupon Japan points out that the salon had the right to decide whether the coupons would be sold.

I personally have limited experience with Groupon. The salon would have been happy to sell a coupon to me since the only one I have bought so far is still taped to my fridge and nearing expiry. What have your experiences with Groupon been? Have you tried to use one at a store that was clearly overwhelmed?

I will be watching this one unfold, check back for more.

Sources:
Slashdot (Japanese)
MSN Sankei News (Japanese)

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