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In its first law enforcement action against an online dating service, the Federal Trade Commission has reached a settlement that prohibits JDI Dating Ltd. The defendants offered a free plan that allowed users to set up a profile with personal information and photos. As soon as a new user set up a free profile, he or she began to receive messages that appeared to be from other members living nearby, expressing romantic interest or a desire to meet. However, users were unable to respond to these messages without upgrading to a paid membership.
Users were not likely to see — much less understand — this icon. The fake profiles and messages caused many users to upgrade to paid subscriptions. In addition, the defendants failed to tell subscribers that their subscriptions would be renewed automatically and that they would continue to be charged until they canceled.
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