Match Group, Inc. (NASDAQ:MTCH), the operator of Match.com, OkCupid, PlentyOfFish, The League, and other dating platforms, will pay $14 million and implement significant policy changes to settle Federal Trade Commission allegations of deceptive practices.
The agreement announced on Tuesday also mandates clearer disclosures, easier subscription cancellations, and an end to locking paying users out of their accounts.
The Federal Trade Commission’s (FTC) complaint, filed in September 2019, accused Match of misleading consumers with its “six-month guarantee” offer.
The promotion promised a free six-month subscription for users who did not “meet someone special” but failed to disclose several strict conditions that made qualifying for the guarantee difficult.
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Regulators also alleged that Match unfairly suspended customers’ accounts who disputed charges with their banks, preventing them from using services they had already paid for. Additionally, the agency alleged that Match made it unnecessarily hard for users to cancel their subscriptions.
Under the proposed court order, Match must disclose the terms of its guarantees and refrain from misrepresenting any material restrictions or conditions.
The company is also prohibited from retaliating against customers who file billing disputes and must provide straightforward methods for canceling subscriptions.
The FTC will use the $14 million payment to compensate affected consumers.
The Commission voted 3-0 in favor of the stipulated final order.
MTCH Price Action: Match Group shares were up 0.34% at $38.79 at the time of publication on Friday, according to Benzinga Pro data.
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