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Go on right or any retailer and you'll see them crossing off MSRP prices by a large %, especially for certain products (e.g. I'm sorry, but they base their prices on the equivalent of the MSRP. But it's also possible, as a commenter Anon on Thumbtack points out, that the value quoted to Groupon for the deal from the business is based on the market retail price, not the actual price. There are a couple of possible explanations for why the numbers didn't match up.

There's some funky number stuff going on. And this isn't the first time Thumbtack has done a daily deals site takedown. Groupon and Living social probably take away some business. The site lists local businesses and allows users to request bids from service professionals. Thumbtack has a reason to make Living Social and Groupon look bad. Considering that Living Social runs multiple deals a day in 603 cities and Groupon runs over 1,000 deals a day in 43 countries worldwide, Thumbtack didn't get a very large set of people.Ĭonflict of interest. Thumbtack says it called 10 merchants and that of that handful, eight advertised lower prices than Groupon or Living Social suggested. But, there are some giant grains of salt that should be taken with this data. It's alarming and a pretty steep accusation.

Thumbtack has two scary bar graphs, showing price inflation for each of the merchants. "In 8 of the 10 deals we reviewed, the 'regular' prices quoted by Groupon and Livingsocial were higher than the prices quoted by the same merchants when we called them," the study finds. In a survey conducted by, Groupon and Living Social flat out lied about the original prices of products, inflating deals savins.

But it looks like the 60 percent off madness might have been too good to be true. ĭaily deals sites are already tarnished in the eyes of many, but Groupon and Living Social have at least one remaining shiny quality: Huge savings. This article is from the archive of our partner.