CMA to open investigations into online dating company
First published by Admin on December 15, 2017 in the following categories: Investigations and tagged with cma
The Competition and Markets Authority (CMA) announced on 31st October 2017 that it will be opening an investigation into an unnamed online dating operator over suspicions of breaching consumer protection laws.
The CMA believes that the suspected company may be engaging its customers into potentially unfair contract terms and conditions which may be distorting fair competition in the market.
In what is now a very popular market that’s growing and growing and making millions for the companies involved, competition should be key. So, if it’s being stifled, something needs to be done about it.
Advertisement and presentation questioned
You have probably come across multiple adverts for online dating websites on the TV or when watching videos online. They’re usually depicted with bright pictures of smiling couples with perfect teeth, accompanied by romantic music in the background.
Whilst websites may promise the chance to meet your soulmate, some may not show you the full cost of signing-up. Market Watch warns of the monthly subscription costs and other costs that may crop up during use of such services. Some online dating sites reportedly offer what can be seen as a misleading costs projection for subscribing, but when it comes to paying long-term, it turns out that the cost could actually triple with initial offers merely showing short-term prices per month if the customer signs up for a minimum number of months.
Some dating sites offer additional payment plans for people to gain more visibility on sites as well. If consumers are not properly informed that such costs may be required to allow for better chances of success, they may be seen as operating unfairly.
As with all purchases, consumers have a right to know how much goods and services are from the outset so they can pick and choose to pay for the one that’s right for them. Without transparency in costs, companies could be breaching consumer rights laws. This can damage competition by destroying the image of pricing when consumers could go elsewhere for cheaper.
Subscription, cancellation and variation contract terms
As mentioned above with costs, some dating websites don’t make their pricing terms quite as crystal clear and visible as the consumer may deserve. As with most membership subscriptions, there are terms and conditions that can accompany the service, namely paying on time and not abusing other subscribers. However, things like additional costs stemming from cancelling or suspending subscriptions should be visible and fair, and there may be concerns that such costs are not as visible as they ought to be.
That’s on top of these extra payments that may be needed for better success.
Consumers are protected by the Consumer Protection from Unfair Trading Regulations and the CMA’s investigations will be inspecting subscription terms to make sure compliance is being maintained.