Groupon India has removed at least two deals for clothes by retailers American Eagle Outfitters Inc
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.
No rights to sell some popular american Brands
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.
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