Local Salon Closed! What Do I Do With My Living Social Coupon?

Bad news for the 5,000 consumers that recently purchased a Living Social spa-day at Austin-based Salon 505.  According to employees interviewed by KXAN, the salon is being reported to have closed this past weekend.   The full story is here.

Long story short, many speculate the closure is a result of not being able to meet the demand that was generated by a recent Living Social deal that the salon offered.  Whatever the case, it’s a shame to see a long-time local business close, especially if it is for reasons appearing to be preventable.

On behalf of BBB, we have no evidence as to whether or not the Living Social coupon is what actually forced the close, but we hope to help other businesses use this as a learning opportunity about the importance of weighing the pros and cons of group buying sites. We also want to use this as an opportunity to remind consumers of the importance of reading the fine print of every online deal (or any purchase) before you pay.

The good news here is that it seems Living Social is being very responsive to the consumers who purchased this spa deal and now are unable to use it. Ironically enough, BBB’s Dispute Resolution manager, Jana Starr, purchased the deal back in January and was sad to hear yesterday that she wouldn’t be able to use it.

Being the savvy consumer she is, Jana knew she should try to review the Living Social terms & conditions (the fine print!) on their website. In doing so, she was happy to find that the company states they will pay a full refund in the event that a merchant goes out of business. Jana was able to quickly call Living Social yesterday and get a representative on the phone to help her. She was reassured that she would be given a full reimbursement and she received an email in less than 10 minutes to double-confirm that her request was being processed. The email explained that she’d have her money back into her account within 3-5 days.  Now that is quick customer service!

All in all, this is a great reminder for everyone using group buying sites to be careful to understand how each site works, find out when refunds are applicable, and all in all, to make sure we truly read the fine print! It is there for a reason and can really come in handy if you’re ever in a bind like Jana.

If you also purchased this deal and need to get a refund, you can reach a live Living Social representative from 8am-8pm EST (Monday-Friday) at 877.521.4191 or submit a help request by visiting help.livingsocial.com and clicking ‘Submit a Help Request’.

Let us know if you have had a different experience or if you have any questions!



  1. Allison H says:

    I had a very different experience. I too called shortly after being notified that the Salon had closed and Living Social would be refunded the purchase. Months went by and no payment. With 2 small kids, this quickly became out of site and mind… Recently it dawned on met that I never received the refund and contacted LivingSocial. I have never had such a poor experience with a customer service department/rep. It was so ridiculous I am still wondering if it was actually a person replying or a robot. The bottom line is that I was repeatedly told NO that I would not be getting a refund but that they would give me $100 worth of DealBucks??? I informed them that I do not want Deal Buck, and once again was told NO… This is still where it stands. Suggestions on where to go from here? I feel like this was a total scam and I will never purchase something from this company again.
    Responses from them:
    Hi Allison,
    Thanks for contacting us!
    We apologize for any confusion, but we do not have any record of a refund request for this deal, and we hate to think you experienced any bumps in the road while redeeming your deal for the Salon 505.
    As a courtesy, we’d like to offer you an out-of-policy Deal Bucks refund. To accept this refund, please reply to this email to let us know, and we’ll be happy to credit your account with Deal Bucks equal to the paid value of your voucher.
    If you still have questions, please reply to this email. We’re happy to help!
    Thanks for LivingSocial!
    Hi Allison,
    Thanks for following up with us.
    We are unable to offer a refund to the credit card at this time, as we confirmed that the merchant went out of business after the expiration date for the voucher.
    If you would like the Deal Bucks, please let us know. Deal Bucks are good for 5 years and are automatically applied to purchases with LivingSocial.
    If you still have questions, please reply to this email.
    Thanks for LivingSocial!
    Hi Allison,
    Thanks for following up with us.
    We apologize for any disappointment with the circumstance. Due to the length of time since this information was made available to you, and because we did not receive your request until now, we are able to offer you a refund in Deal Bucks.
    Deal Bucks are good for five years and are automatically applied to purchases with LivingSocial.
    Please respond to this email to confirm the refund in Deal Bucks.
    If you still have questions, please reply to this email. We’re happy to help!
    Thanks for LivingSocial!

    1. Hi Allison,

      Thanks for reaching out to us. Have you tried using our dispute resolution service?

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