Match Group to Pay $14M Settlement Over Deceptive Advertising Practices

Match Group has agreed to pay $14 million to the Federal Trade Commission (FTC) to settle a 2019 complaint about deceptive practices. The settlement requires Match Group to permanently stop deceptive advertising, cancellation, and billing practices, and to disclose the terms of its six-month free subscription guarantee. Match Group must also refrain from taking adverse actions against consumers for filing billing disputes and provide simple ways for consumers to cancel subscriptions. The FTC plans to use proceeds from the settlement to provide redress to affected consumers.

Match Group Inc. (MTCH) has agreed to pay $14 million to the U.S. Federal Trade Commission (FTC) to settle a 2019 complaint regarding deceptive practices. The settlement requires the company to permanently halt deceptive advertising, cancellation, and billing practices, and to disclose the terms of its six-month free subscription guarantee [1][2][3][4].

Under the settlement agreement, Match Group must also refrain from taking adverse actions against consumers who file billing disputes and provide simple mechanisms for consumers to cancel subscriptions. The FTC will use the settlement proceeds to provide redress to affected consumers [1][2][3][4].

Analysts have forecasted an average one-year price target for Match Group of $38.56, indicating a potential upside [1]. GuruFocus estimates a GF Value of $41.44 for the company, suggesting a 13.58% upside from the current price [1]. Despite the settlement, analysts remain cautious, with a consensus recommendation of "Hold" from 23 brokerage firms [1].

Match Group's stock has been volatile, with recent earnings showing mixed results but guided revenue reacceleration. The new CEO, Spencer Rascoff, is optimistic about his turnaround initiatives for Tinder, the company's largest app, which has been under pressure [3]. While Tinder continues to face challenges, Hinge, Match Group's second-biggest app, grew strongly in the second quarter [3].

The settlement highlights the importance of transparency and fair practices in the online dating industry. Match Group's ability to execute on the terms of the settlement will be crucial for rebuilding consumer trust and maintaining its competitive position.

References:
[1] https://www.gurufocus.com/news/3056435/match-group-mtch-settles-ftc-complaint-with-14m-agreement
[2] https://seekingalpha.com/news/4484031-match-agrees-to-14m-ftc-settlement-over-false-advertising-billing-and-cancellation-issues
[3] https://finance.yahoo.com/news/why-match-group-rallied-big-201056611.html
[4] https://www.marketscreener.com/news/match-group-agrees-to-14-million-settlement-on-deceptive-practices-complaint-ce7c51dadc8cf52d