Recently, Tinder agrees to settle a class action age discrimination lawsuit for $17.3 million and charging users over 30 years old double the standard fee for one of its subscription services. The age discrimination lawsuit filed in California Last April and the premium tier called Tinder Plus and introduced in 2015. It gives users the functions like rewind swipes, more Super Likes, and to swipe for people located in other countries.
Tinder receivedsevere backlash when its service launched for age tiers, and it charged a $9.99 monthly fee for users under 29 and $19.99 for users age of 30 or up. At that time the company defended the pricing model and compared the tiers to Spotify discounted rates for students.
“Under the Settlement, Defendants agree to a multifaceted Settlement structure, which includes a universal participation component (automatic benefits to all Class Members);” the settlement states. “An additional cash or cash-equivalent payout to Class Members who submit timely valid claims; and an agreement to substantially halt Defendants’ allegedly discriminatory practices going forward.”
Tinder first blocked the case by pointing out the arbitration clause in the terms of service and plaintiff Lisa Kim appealed that clause when the settlement was reached. Tinder now have to pay class members a combined $11.5 million amount of compensation. For dropping the charges, class members will receive 50 super likes and an additional choice of a $25 check, 25 more Super Likes, or a free Tinder Plus or Tinder Gold subscription.
Tinder also agreed it would stop age discrimination price tiers for its services in California. They will also offer discounts to users 21 years or younger. Co-founders of Tinder company has sued its parent companies IAC and Match Group for $2 billion dollars for lowering Tinder’s valuation and taking away stock options, and remaining in that lawsuit are claims of rampant sexism and sexual harassment.