By Foo Yun Chee
BRUSSELS (Reuters) -Match Group-owned dating app Tinder on Thursday agreed to inform users better about discounted prices for its premium services following scrutiny from national consumer watchdogs in the European Union over its pricing practices.
The authorities' concerns centred on the way Tinder discloses information about its personalised discounts.
The world's most popular dating app uses automated means to identify users who showed little or no interest in their standard price premium services in order to offer them personalised discounts.
The watchdogs said Tinder applied these personalised prices without informing users, in breach of the bloc's consumer laws.
Following a nearly two-year-long discussion with the Consumer Protection Cooperation Network (LON:NETW) (CPC), the Swedish Consumer Agency and the Netherlands Authority for Consumers and Markets, Tinder will now provide more clarity to users, the European Commission said.
It said Tinder agreed to inform users that discounts the company propose for premium services are personalised by automated means and also why they are being offered personalised discounts.
"Personalisation techniques nullify the possibility to compare prices, effectively disempowering consumers in their purchasing decisions," EU Justice Commissioner Didier Reynders said in a statement.
"This is why EU consumer law now requires that traders disclose whether their price is personalised through automated means," he said.
Tinder said it takes a number of factors into account for personalised discounts.
"Personalized discount offers are applied to customers evenly across the board and offered based on a variety of factors, including for example to customers that have indeed already purchased or otherwise indicated an interest in premium offerings," a Tinder spokesperson said.
The consumer bodies will monitor Tinder's compliance, with fines possible for non-compliance.