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Inside The Online Dating Industry
by Joe Tracy,
publisher of Online Dating Magazine
A
Closer Look at the Lawsuit Filed Against True.com
As
you are likely aware, a
class action lawsuit was filed against True.com earlier
this week. The lawsuit
alleges many unethical billing practices.
I
must admit that I'm not surprised by the lawsuit.
The reason I'm not surprised is because of the emails
I've received from True.com members complaining of
odd charges on their card or True.com "reactivating"
their account without their permission after they'd
cancelled.
On
Tuesday, Tycko & Zavareei LLP, made the lawsuit
official, filing it in Texas, where the base of operations
is for True.com. A closer look at allegations in
the 25-page lawsuit might make you wonder how True.com
got away with these alleged practices for this long.
From the Lawsuit Against True.com:
» True.com tells members
they can cancel anytime, however they can only cancel
"by phone between the hours of 8 a.m. and 8
p.m. (Central) Monday through Friday, and between
the hours of 10 a.m. and 7 p.m. (Central) on Saturday
and Sunday"
» True.com's "'Terms
and Conditions' further state that the subscriber
'agree[s] not to dispute any authorized charge
by True.com or its authorized agents'. The Company's
'Terms and Conditions' further state that the subscriber
'agree[s] and acknowledge[s] that if you fraudulently
report the card used to obtain your subscription
as stolen, or if you fraudulent [sic] report that
an authorized charge by True.com or its authorized
agents is unauthorized, you shall be liable to
True.com for liquidated damages of One Thousand
Dollars ($1,000.00) per incident.'"
» "The
Company bills monthly subscription fees and other
charges to former subscribers after they cancel
their subscription. The Company collects these
fees without their former subscribers' authorization,
knowledge, or consent.."
» "Upon
information and belief, most organizations that
make a majority of their sales via online subscriptions
and/or memberships maintain an online system for
written cancellation of subscriptions and/or memberships.
Given that, upon information and belief, a majority
of the Company's subscriptions are purchased online
via True.com, it is unreasonable for the Company
not to also maintain an online cancellation system
and written record of subscription cancellations."
» "...the
Company knowingly, intentionally, and/or recklessly
charges and collects money from former subscribers
after they cancel the Service. The Company deceives
consumers by failing to inform them, via its marketing
campaign, that the Company continues to charge
and collect monthly fees after cancellation. The
Company sends false and misleading electronic mail
messages to its former subscribers after the former
subscribers have cancelled their accounts."
And those
are just a few small excerpts from the entire lawsuit!
Simply put, when a company conducts itself in an
unethical or shady fashion, there will come a time
when those wrongs are righted. It seems to me that
True.com's time has come. You can't treat your consumers
like trash and not expect to get billed for cleaning.
For months, I've seen True.com's reputation sour
the online dating industry as a whole. From their
misleading advertising campaigns, to the "True
Crew"
emailing members, to the terribly conceived "20
winks"
program, True.com has upset a lot of people through
apparent deceit.
The lawsuit is seeking the following nine items:
"1) An order certifying the Class and appointing
Plaintiff and his counsel of record to represent
the Class;
2) An order enjoining Defendant from engaging in the
conduct and practices complained of herein;
3) Restitution, disgorgement, and such other equitable
relief this Court deems proper;
4) Actual damages sustained by Plaintiff and all others
similarly situated as a result of Defendant's unlawful
conduct and practices complained of herein;
5) Punitive damages;
6) Pre-judgment and post-judgment interest.
7) Treble damages;
8) Reasonable attorney's fees and costs of the suit;
and
9) Such other relief that this court deems just and
proper."
Let this
be a lesson. If you run a business of any type, put
your consumers first and thrive through honesty versus
deception. As the golden rule states, "do unto
others as you would have them do unto you."
If you run an online dating service, the following
should be a part of your core business:
1) If you allow people to sign up online, allow them
to cancel online.
2) Create a service worthy of the trust of those who
sign up. Be ethical in all things you do. Avoid fake
profiles, fake communications, and strive to rid your
service of scammers or those out to deceive your members.
Build a reputation that will make people want to use
your service.
3) Offer a degree of service other providers don't.
For example, as pointed out in a past column, new
online dating service Let's
Grab a Drink actually
offers a refund policy (and easy cancellation)
as follows: "Just sign into our website with
your member information and once logged in click
on the 'delete your account' link
within the Control Panel. By clicking on the 'delete
your account' link, your account will be deleted.
If you are a paying member and have a credit balance,
your credit card will be credited for the remaining
balance in your account."
4) Expire old profiles. Part of your policy be to
rid your service of profiles that have gone 12 months
or longer without the person logging in. This will
keep your service fresh and increase communications
among active members.
In essence, deceiving users will only get you so far.
You might make a little more money in the short term,
but in the long term you will suffer the consequences
financially, legally, and to your reputation.
Never sacrifice integrity for profits. One who does
will never have true balance in their life.
...
Cheers and Jeers
Welcome to Cheers and Jeers where every month we highlight
something a person, company, or service is doing in
the dating world and give it a thumbs up or a thumbs
down. This week...
Cheers:
Confessions of a Matchmaker
There are way too many reality shows that deal with
dating and relationships on TV. Yet a new one, Confessions
of a Matchmaker, is refreshingly good and educational.
The series follows matchmaker Patti Novak as she tries
to match clients in Buffalo. She's a "tell it like
it is" lady that knows her stuff and is very blunt
with what clients are doing right and wrong. This is
a great show for people wanting to improve the impression
they make on a date. But that's only if you apply the
comments to your own life. And number one on the list
- never ever ever ever ever talk about past relationships
on a first date. And for heaven's sake, men, learn
to ask interesting questions instead of just talking
about yourself and your accomplishments! Confessions
of a Matchmaker airs weekly on A&E.
Note: If you know something an online dating service
is doing right, please
let me know. We are going to
be highlighting more of the positives of specific services,
providing them with free publicity as a result of their
desire to be more user friendly.
Joe Tracy is
publisher of Online Dating Magazine and is often quoted
by the media in relation to online dating topics. His Inside
the Online Dating Industry column is published once a month.
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