Loopt is going to settle this matter tomorrow by putting up an offer for 50% off the iPad 2 redeemable at your local Apple store.

Wait, they aren't going to do that? Well, they really should... don't you all agree with me, guys?

Snarkiness aside, this illustrates why I don't like the Loopt model. Even if you ignore the trademark use issues, the whole system sets up a situation in which an outside party is allowed to set another business up as the bad guy for not honoring arbitrary deals they may never had any intention of offering.

IMO this is way worse than Groupon because at least with Groupon you sign up to be screwed.

Those are compilations of actual deals offered by the merchant, not stuff that was made up by others deciding what sort of discount a merchant might offer.