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Friday, 13 July 2012 - Groupon India drops rogue deals on American Eagle, Abercrombie |
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See the best of Reuters photography.  See more | Photo caption  Rolling Stones at 50 Half a century has passed since the Stones first live gig.  Slideshow  Potato's ancient home The ancestral home of the potato is in the Andes mountain region of South America.  Slideshow  Groupon India drops rogue deals on American Eagle, Abercrombie Tweet Share this Email Print Analysis & Opinion Great potential in India long-term growth story Related Topics Tech » By Nivedita Bhattacharjee CHICAGO | Thu Jul 12, 2012 1:24pm EDT CHICAGO (Reuters) - Groupon India has removed at least two deals for clothes by retailers American Eagle Outfitters Inc (AEO.N) and Abercrombie & Fitch (ANF.N) from its web site, because it did not have the rights to sell them, the company told Reuters. "The retailer is not authorized to sell this product, we will investigate the situation to determine appropriate next steps," American Eagle Outfitters spokesperson Rachel DiCarlo told Reuters in an email. She said the company could not be specific at this time about whether it will pursue legal charges. Crazeal.com, a Groupon-owned Indian web site that offers daily deals on items ranging from clothing to spa deals to vacations, did not respond to an email seeking comment, but its parent company, Groupon, said they have taken the deal away. Crazeal offered deals to sell American Eagle linen shirts, Abercrombie & Fitch T shirts and Hollister socks on its website at discounts of more than 50 percent. "We were led to believe that the products sold by our partner were authorized by American Eagle, but upon review, have determined that they do not possess those rights. Because of the error, we have immediately removed the deal from our site," a Groupon spokesperson told Reuters. Groupon later said it had removed the deal offering Abercrombie & Fitch T shirts while it verifies the reseller certificate. Groupon, a daily deals website was started by music graduate Andrew Mason. As a private company, Groupon was one of the fastest-growing businesses in history and in November pulled off one of the largest Internet IPOs of the past decade, valuing the company at well over $10 billion. It bought the Indian website, then called sosasta.com, in 2011. Neither American Eagle nor Abercrombie have a presence in the Indian market. Online retailers often sell dated merchandise from international brands in markets where there is demand, but they have to make sure their suppliers are authorized to sell the merchandise in those countries. International retailers have been eyeing the Indian market for years now, but various laws and regulations make it difficult for them to break into the territory. A plan to open India's retail sector to supermarkets such as Wal-Mart Stores Inc (WMT.N) stalled last year after a fierce political backlash, although the government is now pushing to revive it. More recently, Swedish furniture maker IKEA IKEA.UL announced its plans to invest in India over a period of 15-20 years after the government removed foreign investment caps in single-brand retail in January. (Nivedita Bhattacharjee in Chicago and Alistair Barr in San Francisco; editing by Sofina Mirza-Reid) Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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