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Crazeal (Groupon India) accused of housing unauthorized deals from US garment retailers

Crazeal.com, Groupon’s India unit has been
accused of displaying unauthorized cloth deals for US-based retailers Abercrombie &
Fitch and American Eagle Outfitters. Neither of the retailers have operations
in India and 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.

Crazeal.com, Groupon’s India unit has been
accused of displaying unauthorized cloth deals for US-based retailers Abercrombie &
Fitch and American Eagle Outfitters. Neither of the retailers have operations
in India and 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.

According to this Reuters report, Groupon
India has now removed at least two deals for clothes by these because it did
not have the rights to sell them. “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 has said
adding that the company could not be specific at this time about whether it
will pursue legal charges.

“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 has said.

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.

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