Tinder Agrees to Settle Age Discrimination Lawsuit for $17 Million

  • Contributed by:
  • Views: 187

Tinder has agreed to pay $17 million in a settlement resulting from a class-action lawsuit accusing the popular dating app company of age discrimination. The lawsuit alleged that Tinder charged users who were 30 years old and older more money for the same services, a move that caused the company to come under fire when the pricing structure was first announced.

As a result of the settlement, Tinder also agreed to stop charging people different prices based on their ages, but only in California where the lawsuit was filed.

Tinder’s premium service offers members additional features separate from the free version of the app, like the chance to “rewind” previously passed-on matches, to match with people in different countries while traveling, and the ability to “Super Like” matches in an effort to get their attention. Tinder was criticized when it charged a $9.99 monthly fee for users under 29 and $19.99 for users 30 and up for access to these premium features.

Tinder originally argued that it was following Spotify’s pricing model and in essence providing discounts to students, according to The Verge. A Tinder spokesperson claimed that younger users, “need a lower price to pull the trigger.”

Plaintiff Lisa Kim filed the lawsuit in California last year on behalf of herself and about 230,000 class members.

The settlement directs Tinder to distribute $11.5 million in cash and services among all class members. In addition, it must submit $5.75 million in potential cash or cash equivalent in services to every class member who submits a claim.

According to Forbes, each user with active accounts who fall under the settlement will automatically get 50 Super Likes and can claim an additional 25 Super Likes or $25 in cash, or a free one-month subscription to Tinder Plus or Tinder Gold.

Kim will receive $5,000 as the lead plaintiff.

“Under the Settlement, Defendants agree to a multifaceted Settlement structure, which includes a universal participation component (automatic benefits to all Class Members);” the settlement states. “An additional cash or cash-equivalent payout to Class Members who submit timely valid claims; and an agreement to substantially halt Defendants’ allegedly discriminatory practices going forward.”

Tinder’s parent company Match Group is currently involved in other lawsuits, most notably with former Tinder employees including founder Sean Rad, who claim that Match Group devalued their stock options by lowering Tinder’s valuation. The lawsuit also alleges former CEO Greg Blatt engaged in sexual harassment.

The age discrimination lawsuit was settled in late January. Tinder said going forward, it may offer discounts for its premium services to members who are 21 or younger.