Online Dating

The Communications Decency Act (CDA) regulates indecency and obscenity on the Internet in the United States. It also declares that operators of Internet services were not to be considered as publishers unless they actually created the material. This makes them not legally liable for the words of third parties who use their web sites. This includes everything from forum posts and comments too submitted articles.

The Friendfinder Network recently got into legal trouble when someone complained that someone else had created a fake profile on the dating site that “reasonably identified” her. Friendfinder did remove the profile from the dating site but the profile information and photo was still being used in advertising. The reason the Communications Decency Act was not applied in this case is:

... the right to control the commercial use of one’s identity is it considered a general intellectual property right. The judge reasoned that Friendfinder wasn’t entitled to the CDA’s usual brand of immunity due to the intellectual property provision that states the CDA does not preempt intellectual property laws.

In section 5 of Friendfinders Terms of Use Agreement it states:

By posting content to any public area of FriendFinder, you automatically grant, and you represent and warrant that you have the right to grant, to FriendFinder Network, Inc. and its members, an irrevocable, perpetual, non-exclusive, fully-paid, worldwide license to use, copy, perform, display, and distribute such information, rights of publicity, and content and to prepare derivative works of, or incorporate into other works and other media, such information and content, and to grant and authorize sublicenses of the foregoing.] This basically gives Friendfinder ownership over almost anything posted on their site. This may raise alarm bells when you read it but, it is common practice among dating services, social networks and other web services in which you post information.

While I am far from being a lawyer it appears to me that FriendFinder got into trouble because the information posted in the profile by the other person did not belong to them to post in the first place. Since the information posted in the profile was about some other actual person they had no right to post it, therefore they did not have the right to give up the general intellectual property right of the material to Friendfinder.

It is a sticky situation. Overall the person who actually posted the material is responsible, but Friendfinder did continue to use the information in advertising even after they were made aware of the problem with the information from that particular profile. I'm not sure how old this case actually is but, when you see profile information in FriendFinder Ads now (at least from the ads I see) they have a note at the bottom explaining "Photos and other data are for illustrative purpose only". I guess for the most part they have stopped the practice of using actual profiles in their advertising.

For the full story plus another example legal case, read the post at Public Knowledge and for more information on the CDA visit Wikipedia.

The Los Angeles Business Journal has a piece called "Translating the Book of Love" which looks at the dating service eHarmony and if its current matching and communication system will work well in other countries with different cultures. Currently eHarmony has separate dating services for the United States, Canada and Australia. These services do differ slightly but the questions for the dating profiles and the matching system, for the most part, are either the same or very similar. This is in part because all 3 countries major language is english and the culture surrounding marriage and dating are not all that different.

In June eHarmony plans to launch a UK version with other European countries to follow. The big news is, they do plan to launch a dating site in China. This means a new language for them and new cultural differences to work out. eHarmony did do some research to see if it was possible to convert their dating site and matching system. Through focus groups in China, a panel of psychologists validated the translations of questionnaires and found that cultural differences matter little when it comes to measuring personality types and values. A Beijing University study also confirmed that eHarmony's matching system will work well in matching China's singles together. eHarmony's lead PH.D. psychology researcher, Galen Bucjwalter is quoted:

“We found the models to be highly effective in that we can predict successful marriages in China,”

With 4 times the population of the United States, and with China's average income levels for the middle class increasing every year, there is a huge potential for revenue if a dating service is well received by the public.

Another interesting point in the article was the fact that eHarmony spends about $3 million a year in research to find out what makes couples compatible and stay in a long term relationship. This dollar amount includes the salaries of 6 full time PH.D. researchers.

For more information about eHarmony, take a look at our review.

According to Reuters, Match.com has partnered with two more companies to exclusively offer their internet visitors an online dating service. The first partnership is with the Latin America web portal called Terra. This web portal serves 7 countries and is considered the largest in the region.

The second multimillion dollar partnership is with NineMSN in Australia. This web portal owned by Microsoft and PBL Media receives almost 8 million visitors a month. Match.com also powers the dating service for MSN here in the United States.

This is a smart move by Match.com as internet dating becomes more crowded here at home. It's difficult to start a new business in a foreign country and attract visitors quickly. It is a lot easier and smarter to find a web site with a large amount of traffic in your demographic and partner with them to offer your service. Match.com has the software and knowledge of what works with online dating while the other companies offer their traffic and website. Match.com has been quite successful in the international arena. In the first quarter of this year their international subscribers grew by 8%.

Read our Match Review (match.com) or our Match.com UK Review to find out more information about this service.

InformationWeek has a press release from True.com that is called "TRUE.com Increases Advertising Spend to $75 Million, Reflecting Positive Corporate Growth ". I had to laugh at the title. When is growth meassured by the amount of money you spend on advertising. It isn't even money they have spent yet, just forecasted too.

With all the news about internet dating safety bills lately, I noticed that the Spark Networks dating sites have a new warning at the bottom of their home pages. Here is the text I am referring to as quoted from AmericanSingles.com:

Spark Networks Limited does not conduct background checks on the members or subscribers of this website.

I wonder if this background checks warning is response to the New Jersey's Internet Dating Safety Act. If so, and since I don't live in the state of New Jersey, it appears they are displaying the message to everyone and not just New Jersey residents.

I've been meaning to post this information for a while.

Spark Networks released their First Quarter 2008 Financial Results on May 1, 2008. Spark Networks revenue for this period is $15 million. This is $1.8 million less from the first quarter 2007 and a decrease of 6% over quarter 4, 2007. It is not all bad news though as operating expenses where cut 27% over quarter 1, 2007 which resulted in a $1.6 million net income. Spark Networks reported a net loss of $1.4 million last year in the first quarter.

As far as subscribers are concerned, Spark Networks in the first quarter of 2008 had 195,325 subscribers. This is a decrease of 16% from 231,313 from the first quarter in 2007 and a decrease of 3% from the fourth quarter of 2007.