Match Group to Pay $14 Million FTC Settlement for Deceptive Practices

Match Group Settles FTC Lawsuit for $14 Million

In 2019, the U.S. Federal Trade Commission (FTC) initiated legal action against Match Group, the parent company of several prominent dating applications. The lawsuit alleged deceptive practices concerning Match.com subscription sales.

After a six-year legal process, Match Group – which manages popular dating platforms including Match, Tinder, OkCupid, Hinge, and Plenty of Fish – has reached a $14 million settlement with the FTC, as officially announced on Tuesday.

Settlement Funds and Consumer Redress

The FTC has declared that the $14 million settlement will be allocated to provide “redress to injured consumers.” This means the funds will be used to compensate individuals affected by the alleged deceptive practices.

The core of the lawsuit centered on accusations that the company knowingly exposed consumers to potential scams. Marketing emails were reportedly sent regarding new messages originating from accounts already flagged as likely bots or scammers.

This practice allegedly misled users into purchasing subscriptions, with Match Group purportedly profiting from these subscriptions while being aware of the risks.

Additional Allegations Against Match Group

Furthermore, the lawsuit claimed that Match Group restricted account access for users who disputed charges. These users were accused of having their funds retained despite not receiving the services for which they had paid.

The company was also accused of creating obstacles for users attempting to cancel their subscriptions, making the process unnecessarily difficult.

Terms of the Proposed Order

Beyond the $14 million payment, the proposed order mandates several corrective actions from Match Group. These actions are designed to address the issues raised by the FTC.

Specifically, the company is required to clearly outline the terms of its six-month subscription guarantee. It must also refrain from taking any negative actions against customers who voice concerns regarding billing discrepancies.

The order also necessitates the implementation of simplified subscription cancellation processes for users.

Ongoing Scrutiny and Future Improvements

This settlement arrives amidst continued criticism regarding Match Group’s handling of trust and safety concerns. It is anticipated that the proposed order will contribute to an improved user experience.

Match Group's Response

A company spokesperson stated that Match.com and its brands will continue to adhere to the Restore Online Shoppers’ Confidence Act (ROSCA) and fulfill the $14 million payment, representing 5% of the FTC’s initial monetary demand.

The spokesperson also clarified that Match Group does not admit liability as part of the resolution. They were prepared to proceed to trial but chose to settle to resolve the matter. The company believes the FTC’s claims are outdated and no longer relevant to their current business practices.

This report has been updated to include a statement from Match Group.