Popular dating app Tinder has pledged to inform users within the European Union (EU) about the reasons behind the varying fees they encounter for the same service.
This commitment comes after the European Commission initiated an investigation following consumer complaints in Sweden and the Netherlands.
(Photo : MARTIN BUREAU/AFP via Getty Images)
Tinder Promises to EU Users to be Transparent About Fee Discrepancies
A coalition of consumer authorities, prompted by these grievances, discovered that Tinder implemented individualized pricing without adequately notifying users, violating EU consumer regulations.
According to the European Commission, such personalized pricing strategies hinder consumers from making informed decisions and constitute unfair practices.
The European Commission released an official statement outlining Tinder's commitments following discussions with EU and national consumer authorities. Tinder vowed to cease personalized pricing by the middle of April based on age without informing users beforehand.
Tinder has also agreed to notify consumers that its premium services' discounts are tailored using automated algorithms and explain why that happens, for example, because they declined to buy a service at the standard rate.
The Commission stressed the importance of transparently informing users about personalized discounts to enable informed decision-making.
The network of national consumer authorities found that Tinder's personalized pricing practices, mainly based on age, violate EU consumer law. However, Tinder ceased this practice before the investigation began.
The Consumer Protection Cooperation Network, led by the Swedish Consumer Agency and the Netherlands Authority for Consumers and Markets, initiated discussions with Tinder in July 2022.
As a result, Tinder committed to several actions by mid-April, including refraining from age-based personalized pricing without explicit notification to users, clearly informing users about personalized discounts, and explaining to users the basis for receiving personalized discounts.
Moving forward, the Consumer Protection Cooperation Network will actively monitor Tinder's implementation of these commitments, ensuring compliance. In case of non-compliance, the network possesses the authority to enforce compliance, potentially through imposing fines.
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Why Tinder Has to Pledge
This development is based on a 2022 Swedish Consumers' Association study, which revealed Tinder's practice of charging different prices to different users without a discernible pattern. Under EU regulations, businesses must provide truthful and transparent information to consumers, particularly regarding pricing.
The Unfair Commercial Practices Directive stipulates that traders must furnish material information about prices clearly and understandably. At the same time, the Consumer Rights Directive mandates disclosure of personalized pricing based on automated algorithms.
The Consumer Protection Cooperation is a crucial network for enforcing EU consumer protection laws and coordinating actions across national authorities to address cross-border issues. These efforts encompass various consumer rules, ranging from unfair commercial practices to e-commerce and passenger rights.
In response to these developments, EU Commissioner for Justice Didier Reynders emphasized the significance of transparency in pricing, noting that personalized pricing techniques undermine consumers' ability to compare prices and make informed decisions.
"It is a timeless and universal fact that the price is the most important deciding factor for consumers. However, personalisation techniques nullify the possibility to compare prices, effectively disempowering consumers in their purchasing decisions," Reynders said in a statement.
"This is why EU consumer law now requires that traders disclose whether their price is personalised through automated means. I am pleased that Tinder will now ensure that the rights of its users are fully respected," he added.
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