Finances

Dating conglomerate Match Group was ordered to pay $2 million USD to settle a civil lawsuit filed by Santa Cruz County involving the company’s practices when it comes to automatic renewals. Match Group app users complained of a confusing and difficult process when they wanted to terminate their accounts and were often unaware when the company automatically renewed their membership without notifying or asking them to do so.

According to The San Diego Union Tribune, the settlement was signed by a Santa Cruz Superior Court Judge in early July, and the company was ordered to pay civil penalties and victim restitution that amounted to $2 million. Match Group has also been ordered to change its renewal and termination processes to make them more transparent to customers, including getting consent from users via a checkbox before automatically renewing their subscriptions, and emailing customers confirmations of transactions.

“Consumers should be protected from practices that deceptively and unfairly force them to pay for something they don’t want,” L.A. District Attorney Gascón told Canyon News. “We want companies to thrive, but they should be mindful to not abuse technology tools to violate consumer protections.”

Dating app Thursday has secured $3.5 million in seed money investment after launching in New York and London in May, according to Tech Crunch.

The dating app’s name comes from the fact that it’s only live once a week – on Thursdays, so users of the app will have to be sure to log on then if they don’t want to wait another week to connect with potential matches. Thursday goes live at 1:00am and closes at midnight each week, when all conversations and matches vanish. So, if you really want to continue with a match you made on the app, you have to commit and make plans quickly. 

The idea seems to be taking off, at least for now. A month and a half after its launch, the company said in a statement that it had 52,000 downloads, 110,000 likes were sent, and also reported 7,500 matches in a single day. The company also received more seed money than it had planned to raise.

Dating app Snack has announced it is looking for young Gen Z investors with the launch of its new Gen Z Syndicate on AngelList. 

According to Tech Crunch, this move opens funding to Gen Z community members, the app’s target audience. The company hopes to attract influencers, creatives, and young entrepreneurs to participate in the company’s $2 million ask alongside angel investors and other funding sources, giving them a stake in the app.

Snack is setting this up as a SAFE (small investment future equity), which means its offering is based on future growth, and the company is allocating a certain amount to create its own Gen Z syndicate.

Dating app Bumble exceeded analysts’ expectations when the company reported its first quarter earnings, with revenues and new subscriber numbers significantly higher than what was initially predicted.

Revenue for the dating company rose 43 percent from the same quarter in 2020 to $171 million, up from $79.1 million this time last year, beating expert estimates and even the company’s own predictions. According to Marketwatch, Bumble shared that the number of total paying users also rose significantly, up 30 percent to 2.8 million compared to 2.2 million from the first quarter of 2020. 

This past quarter was also good for Bumbles other dating brands like Badoo. Revenue for them increased year-over-year to $58.1 million.

Online dating company Match Group’s stock rose after details of its first quarter earnings report were announced. Shares were up 5.3 percent to $146.30 according to recent trading reports.

Barron’s reported that Match Group posted revenue of $668 million for the quarter, up significantly from original Wall Street forecasts of $650.7 million. And profits were also up 57 cents a share, higher than the expected 40 cents per share. Match Group owns a range of popular dating apps, including Tinder, OkCupid, Plenty of Fish, and Hinge as well as niche apps like BLK and OurTime.

Tinder is still the star of Match Group’s offerings and its main revenue stream, with 18 percent growth in revenue for the dating app. However, Match Group noted that it has seen 30 percent growth in the rest of its business. Notably, some of its lesser-known apps like Hinge are seeing a surge of growth as the company invests more in its other offerings, too.

Match Group testified in front of the U.S. Senate recently, arguing that tech giants Apple and Google are allowing underage users to access its dating apps.

Underage users have been able to download dating apps with age restrictions even while signed into their Apple or Google accounts, simply by clicking “yes” on a pop-up verification notice that asks if they are 18 or older. Neither Apple nor Google cross-checks the verification with their own data, and neither has set up a process to prevent these users from accessing the apps beyond the pop-up notice. 

Match Group’s chief legal officer Jared Sine testified on April 21st, according to Bloomberg News, saying that Apple and Google are allowing people under 18 years of age to download their dating apps despite the age restrictions. According to Sine, these companies are aware of the problem and ignoring it anyway; and they refuse to share personal user data with Match Group to address it.