This issue may have been familiar among online dating services and a lot of them have been talking about it. This lawsuit against True.com should serve as a reminder not only for the online dating members but also for those who want to venture into the business.
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As you are likely aware, a class action lawsuit was filed against True.com earlier this week. The lawsuit alleges many unethical billing practices.
I must admit that I’m not surprised by the lawsuit. The reason I’m not surprised is because of the emails I’ve received from True.com members complaining of odd charges on their card or True.com “reactivating” their account without their permission after they’d cancelled.
On Tuesday, Tycko & Zavareei LLP, made the lawsuit official, filing it in Texas, where the base of operations is for True.com. A closer look at allegations in the 25-page lawsuit might make you wonder how True.com got away with these alleged practices for this long.
From the Lawsuit Against True.com:
» True.com tells members they can cancel anytime, however they can only cancel “by phone between the hours of 8 a.m. and 8 p.m. (Central) Monday through Friday, and between the hours of 10 a.m. and 7 p.m. (Central) on Saturday and Sunday”
» True.com’s “‘Terms and Conditions’ further state that the subscriber ‘agree[s] not to dispute any authorized charge by True.com or its authorized agents’. The Company’s ‘Terms and Conditions’ further state that the subscriber ‘agree[s] and acknowledge[s] that if you fraudulently report the card used to obtain your subscription as stolen, or if you fraudulent [sic] report that an authorized charge by True.com or its authorized agents is unauthorized, you shall be liable to True.com for liquidated damages of One Thousand Dollars ($1,000.00) per incident.’”
» “The Company bills monthly subscription fees and other charges to former subscribers after they cancel their subscription. The Company collects these fees without their former subscribers’ authorization, knowledge, or consent..”
» “Upon information and belief, most organizations that make a majority of their sales via online subscriptions and/or memberships maintain an online system for written cancellation of subscriptions and/or memberships. Given that, upon information and belief, a majority of the Company’s subscriptions are purchased online via True.com, it is unreasonable for the Company not to also maintain an online cancellation system and written record of subscription cancellations.”
» “…the Company knowingly, intentionally, and/or recklessly charges and collects money from former subscribers after they cancel the Service. The Company deceives consumers by failing to inform them, via its marketing campaign, that the Company continues to charge and collect monthly fees after cancellation. The Company sends false and misleading electronic mail messages to its former subscribers after the former subscribers have canceled their accounts.”
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According to onlinedatinmagazine.com (the source of the article) these above are just excerpts from the original lawsuit. The problem with a lot of these online businesses that are illegal in nature is that they think they can actually get away with it! For some weird reason, in spite the downfall of some of the biggest internet scams, they think that they are going to be an exemption from the law hoping that they won’t get tracked. If you are planning into venturing to online dating service business, be aware of the word “service.” Put your customer’s satisfaction before yours. There are a lot of online dating services that are doing well because they are honest with their members and they don’t trick them out of their money. Remember that you will lose more in going through these horrendous scams instead of earning from it.
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This post was written by admin on December 1, 2008