On the 25th of January, 2019, TechCrunch announced about the lawsuit settlement agreed by Tinder. This settlement agrees to settle a $23 million class-action age discrimination lawsuit.
Here is more information based on this news.
Tinder and the Lawsuit –
The lawsuit was filed last April in California. This settlement alleged Tinder to charge people twice the amount of the subscription services for people aged over 30 years.
The settlement states the following –
“Under the Settlement, Defendants agree to a multifaceted Settlement structure, which includes a universal participation component (automatic benefits to all Class Members); An additional cash or cash-equivalent pay out to Class Members who submit timely valid claims; and an agreement to substantially halt Defendants’ allegedly discriminatory practices going forward.”
Specifically, this includes every person who is above 29 years of age who have subscribed to either Tinder Plus or Tinder Gold, between the 2nd of March, 2015 and the date of the preliminary approval. This is with accordance to the proposed order granting motion for preliminary approval of class-action settlement.
More Insight –
Specifications of the Lawsuit –
As TechCrunch mentions the lawsuit was filed on behalf of about 230,000 class members; each person will be able to receive either $25 in cash, 25 additional Super Likes or a one-month subscription to either Tinder Plus or Tinder Gold. As part of the settlement, the company must distribute $11.5 million to all class members; as well as $5.75 million in potential cash or cash-equivalents (e.g. Super Likes) to every class member who submits a claim.
The company has also agreed to stop charging people — just those located in California — different prices based on their age. That carries a value of at least $5.75 million, according to the settlement. In total, this amounts to a $23 million settlement.
The Settlement also provides that after the Effective Date, Defendants will no longer charge different prices based on age for new Tinder Plus or Tinder Gold subscriptions purchased in California (but Defendants reserve the right to offer a youth discount to subscribers age 21 or younger). Agreement § 3.3.
The Settlement allows for an exception in the event of subsequent legislation in California that specifically addresses age-based pricing and, reasonably interpreted, would permit age-based pricing using other age cut-offs, or an appellate opinion by any court in California to the same effect, or legislation that expresses a public policy in favor of or benefiting a particular age group. In such event, Defendants may implement age-based pricing consistent with such legislation or case law.