Contributed by: ElyseRomano on Wednesday, November 27 2013 @ 08:01 pm
Last modified on
Watch out, IAC - Markus Frind may be coming for your crown!
For a long time, IAC (InterActiveCorp) has been the undisputed ruler of online dating. IAC's businesses include Singlesnet.com. SinglePeopleMeet.com, OurTime.com, OkCupid.com, and, last but certainly not least, Match.com. Add it all together, plus IAC's numerous successful ventures outside of the dating industry, and you've got a seriously unstoppable force.
Markus Frind, CEO of Plenty Of Fish, recently attempted to score another piece of the kingdom for himself and push IAC an inch more off its throne. True Beginnings, the Texas-based owner of True.com, entered Chapter 11 bankruptcy protection in 2012 and is attempting to sell its assets. Frind was poised to gobble the site up, but Texas Attorney General Greg Abbott has protested the sale.
Citing privacy concerns, Abbott objected in federal bankruptcy court to the sale of True.com's 43 million member database. "At a time when privacy is an issue of grave concern to so many," he said in a press release, "we are taking legal action to prevent an online dating service from selling more than 2 million Texans' personal information without their consent."
True Beginnings told the court they planned to notify users by email that their personal information would be sold, but Abbott contends that the company must obtain each customer's approval individually first. "The proper course is for True.com and its bankruptcy trustee to seek the customers' permission before selling their private information to a third party," he explained, "and that's exactly what our legal action asks the bankruptcy court to require before the case proceeds."
When signing up for True.com, users are told that their personal data - including phone numbers, passwords, financial billing info, and browsing history - cannot be transferred without their consent. However, Abbot notes, ambiguous language found in the site's privacy policy quietly adds that members' personal information held in the company's database would be treated as a transferable asset in the event the company was acquired by a third-party buyer.
Unsurprisingly, Frind is not pleased with the development. "Who in their right mind is going to buy a dating site with 43 million members if you are not allowed access to those members?" he wrote in a blog post. "This would be like buying twitter but you don't get access to twitters users unless they agree to the sale."
Under the current transfer process, True.com member data will be transferred automatically unless the customer takes direct steps to opt-out. Abbot is instead arguing that customers should opt-in and directly express approval for the transfer of their personal information. Whichever way this goes, it's bound to set a precedent for all future dating site sales.