Match Group Settles $14M for Deceptive Dating App Practices
Match Group, the company behind popular dating platforms like Match.com and OkCupid, has agreed to pay a $14 million settlement to resolve charges of deceptive advertising and billing practices. The Federal Trade Commission (FTC) alleges that the company engaged in misleading tactics to entice consumers to subscribe and retain their subscriptions.
Between 2013 and 2018, a significant portion of Match.com's daily registrations, up to 30%, were found to be scammers, including those involved in romance scams and phishing attempts. The company maintained five primary deceptive practices, including promoting communications from potentially fraudulent users in its advertisements.
Match Group's 'match GUARANTEE' offered a free six-month subscription if consumers didn't meet someone special within the initial six months. However, the company failed to adequately disclose the numerous requirements consumers had to meet to claim this guarantee. Additionally, the company's cancellation process was confusing and cumbersome, leading consumers to believe they had canceled their subscriptions when they had not, resulting in unwanted renewals. The company even went as far as terminating accounts of consumers who disputed charges through financial institutions and lost those disputes, losing access to remaining subscription time.
The settlement reflects the FTC's ongoing focus on subscription service practices and advertising transparency. Match Group must now pay $14 million for consumer redress, clearly disclose guarantee requirements, provide simple cancellation mechanisms, and refrain from retaliating against consumers who file billing disputes. This settlement serves as a significant enforcement action in the digital advertising space, demonstrating regulatory scrutiny of subscription-based services and their marketing tactics.
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