MONTREAL- Going online to check for deals has the daily routine for thousands of people.

The advent of Groupon and similar companies that offer new deals each day, with an "act-now" incentive, encourages people to spend.

Nancy Essebag is one person who gets a thrill from being offered something that feels exclusive.

"It's exciting! I get it every morning," said Essebag. "Checking your email, you check the daily deal."

 

Coupons often come with a time limit

The sites are in essence an updated, sped-up version of the coupon-clipper flyer that appears in newspapers, but they offer retailers a way to target an audience.

Businesses are counting on hooking consumers into buying coupons on deals before the day is over and often offer greater incentives shoppers can convince friends to participate as well.

Athena Mougouyannis's laser hair removal business has grown four-fold ever since advertising on Living Social.

"I took a chance but I prepared for that of course. I know that if it's a lot of people you have to be able to serve also," said Mouguyannis.

She ended up opening a larger clinic, with more staff and better equipment, and no longer has to kick back 40% of coupon sales to Living Social.

Mouguyannis says she is also seeking to franchise her company.

 

All things online come with bugs

But like all things involving computers, there are bugs.

Elise Theriault of Option Consommateurs has been looking closely at daily deals and has observed many problems.

In one notable case a bakery in England sold thousands more coupons for cut-rate cupcakes that it anticipated. The company ended up having to hire temporary workers, and expects to lose a year's worth of profit from the one-day sale.

"We've seen cases of overbooking. For example people buying coupons for yoga classes, you may be available for the fall session, but because there is an overselling of coupons, you may have it in the fall next year. Or in two years," said Theriault.

Theriault, for one, thinks some online deals should never expire.

"As long as you prepay the coupon, there should be no expiration date," said Theriault.

In Quebec, the Office du Protection Consommateur says gift cards or coupon paid for in full cannot have an expiry date.

The law is unclear if a coupon that only applies to a portion of the total bill can expire.

Essebag admits she had a bad experience when she bought a coupon for a couples massage.

"We got there. It wasn't what we expected at all," she said with a grimace.

Companies trying to avoid similar horror stories are now being much more diligent about placing limits on their offers -- and consumers should check the fine print too, to ensure black-out periods or expiry dates are not a surprise.

As for Essebag, she went back online to find her boyfriend a perfect Christmas present: a watch being sold at 75% off.

 

 

A partial list of coupon sites: