8KPAX – The Federal Trade Commission (FTC) is charging online background check companies Instant Checkmate and TruthFinder for allegedly deceiving customers. The FTC claims that the companies inaccurately reported criminal or arrest records based on minor infractions like traffic tickets and failed to verify the accuracy of their data. By advertising their services for tenant and employment screening, the companies fall under the Fair Credit Reporting Act (FCRA) and have violated it by not ensuring the accuracy of their reports. The FTC is seeking a combined fine of $5.8M. Despite these allegations, both companies maintain A+ ratings with the Better Business Bureau.
Month: September 2023
JPMorgan Analyst Recommends Investing in Match Group, Citing Tinder’s Growth
BLOOMBERG – JPMorgan analyst Cory Carpenter advises investors to invest in Match Group, anticipating that its Tinder app will see double-digit growth in the upcoming quarter. Carpenter upgraded his price target for Match from $55 to $60, despite negative investor sentiment, and dubbed it his "top pick" over competitor Bumble. He argues that concerns about market saturation in online dating are exaggerated and predicts a 10% compound annual growth rate for the industry through 2026. While Bumble's shares have declined, Match has gained ~3% in 2023.
by Joel Leon
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LOVOO’s New Date Map Feature Partners With Restaurants to Boost User Engagement and Local Businesses
Betterhalf Matrimony Startup Announces Second Share Buyback, Hits $500K Monthly Revenue
INC42 – AI-based matrimony and wedding planning startup Betterhalf has announced a second Employee Stock Option Plan (ESOP) buyback, benefiting 29 current and former employees. This follows the company's first share buyback in 2022. Betterhalf also revealed it has reached $500K in monthly revenue. Founded in 2016, the company targets high-income individuals in India's major cities and claims to get 60% of its wedding customers from its matchmaking service. The startup, which recently raised $8.5M in a Series A funding round, competes with platforms like Shaadi.com and aims to revolutionize India's wedding industry.
TeaserAI Dating App Shuts Down After 3 Months
DAILY TELEGRAPH – TeaserAI, an Australian dating app that used AI to facilitate conversations and prevent "ghosting," is shutting down just three months after its launch. The app aimed to enhance user engagement by mimicking personalities and encouraging real-life meetings. Despite its innovative approach, users found the app confusing, leading to its early closure. The shutdown highlights the challenge of balancing tech innovation with user-friendly experiences in the dating app market. Users navigating to Teaser AI's URL will now be redirected to MilaDating.com.
Bumble’s Stock Structure Upheld by Delaware Judge (Correct)
BLOOMBERG LAW – A judge in Delaware has ruled that Bumble's special stock structure is legal, dismissing a lawsuit from an investor who claimed it was unfair. The company's rules give 10 votes per share to its founder, Whitney Wolfe Herd, and its early supporter, Blackstone Inc., while all other shareholders get just one vote per share. The judge said this setup is allowed under Delaware law, which is where Bumble is registered. This means the company can continue to operate with its current voting structure.
Stir Survey Sheds Light on Dating Preferences and Priorities of Single Parents
Spark Networks Announces Commencement of OTC Trading
PRESS RELEASE – Spark Networks SE is now trading its American Depositary Shares on the OTCQX Best Market with the symbol LOVLY. This means its shares won't be traded on NASDAQ anymore. OTCQX is a market for trading certain types of securities, mainly for established companies. Spark Networks operates dating apps like Zoosk, EliteSingles, and Christian Mingle. The company is based in Berlin, Germany, with offices in New York and Utah.
Parship CEO: “The Search for Partners Has Become Less Romantic”
CAPITAL.DE – Parship CEO Marc Schachtel discusses challenges in online dating like ghosting and benching, accelerated by digitalization. Parship has responded by improving message quality and enforcing a no-filter policy to prevent manipulated photos. Schachtel emphasizes the platform's responsibility for content and the goal of fostering meaningful relationships while making a profit. He acknowledges the shift towards a more structured and less romantic approach in online dating but aims to strike a balance.