Groupon works by informing subscribers about coupons which they can then purchase for events, services, and recreation. Traditionally, Groupon informed subscribers about general deals, but with its new data collection plan, the company claims it will have the capacity to send each subscriber more specific information about the coupons most relevant to them. Groupon has dispelled concerns about privacy issues by claiming that users have the ability to both opt out of some of the new data collection methods, and that the data that Groupon does collect will only be used in a way beneficial to subscribers.
If a user does not want his or her smart phone transmitting location information to Groupon, the company claims that setting can easily be changed. If, on the other hand, an individual wants to opt out of some types of messages that Groupon and its business partners send out, that too can be arranged. Driven by a philosophy of consumer satisfaction, Groupon claims to be seeking to provide the best possible service to its subscribers, in the least intrusive way possible.
Concern exists especially in situations where companies, like Groupon, might be able to make use of and store information that individuals post about their friends and family members. Such information might be given without consent of the relevant individual. Privacy activists also make note of the fact that individuals might consent to sharing information with Groupon, but might feel uncomfortable if that information is then in turn shared by Groupon with other companies or with governments.