In response to concerns raised by national consumer watchdogs in the European Union regarding its pricing practices, Tinder, a dating app owned by Match Group, has agreed to implement measures to better inform users about discounted prices for its premium services, reported Reuters.
The authorities’ scrutiny focused on Tinder’s use of automated algorithms to identify users who displayed little or no interest in their standard-priced premium services. These users were then offered personalized discounts without being adequately informed, which was deemed a violation of the EU’s consumer laws.
After nearly two years of discussions with the Consumer Protection Cooperation Network (CPC), the Swedish Consumer Agency, and the Netherlands Authority for Consumers and Markets, Tinder has committed to providing users with greater clarity regarding its pricing strategies, as announced by the European Commission.
Under the new agreement, Tinder will inform users that the discounts offered for its premium services are personalized using automated algorithms. Additionally, users will be provided with explanations as to why they are receiving personalized discounts. EU Justice Commissioner Didier Reynders emphasized the importance of transparency in consumer transactions, stating, “Personalization techniques nullify the possibility to compare prices, effectively disempowering consumers in their purchasing decisions.”
Reynders further elaborated that EU consumer law now mandates traders to disclose whether their prices are personalized through automated means, underscoring the necessity for transparency in pricing practices.
Source: Reuters
Featured News
Mastercard Settlement Faces Challenge in Landmark Consumer Case
Dec 4, 2024 by
CPI
Novartis Loses Appeal to Delay US Launch of Entresto Generic
Dec 4, 2024 by
CPI
UK Delays Provisional Findings in Cloud Market Probe to January
Dec 4, 2024 by
CPI
EU Probes Nvidia Over Alleged Bundling Practices Amid Run:ai Acquisition Scrutiny
Dec 4, 2024 by
CPI
Supreme Court Asked to Weigh In on Major Rail Access Antitrust Case
Dec 4, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Moats & Entrenchment
Nov 29, 2024 by
CPI
Assessing the Potential for Antitrust Moats and Trenches in the Generative AI Industry
Nov 29, 2024 by
Allison Holt, Sushrut Jain & Ashley Zhou
How SEP Hold-up Can Lead to Entrenchment
Nov 29, 2024 by
Jay Jurata, Elena Kamenir & Christie Boyden
The Role of Moats in Unlocking Economic Growth
Nov 29, 2024 by
CPI
Overcoming Moats and Entrenchment: Disruptive Innovation in Generative AI May Be More Successful than Regulation
Nov 29, 2024 by
Simon Chisholm & Charlie Whitehead