Match Group's Shares Fall After FTC Sues Company For Fake Love Interest Ads

Match Group Inc MTCH shares were trading lower after it emerged the Federal Trade Commission is suing the company for using fake love interest ads.

The FTC alleges the company used fake love interest advertisements to trick hundreds of thousands of consumers into purchasing paid subscriptions on Match.com.

Match offered false promises of “guarantees,” failed to provide services to consumers who unsuccessfully disputed charges, and made it difficult for users to cancel subscriptions.

“We believe that Match.com conned people into paying for subscriptions via messages the company knew were from scammers,” said Andrew Smith, director of the FTC’s bureau of consumer protection. “Online dating services obviously shouldn’t be using romance scammers as a way to fatten their bottom line.”

Match Group shares were trading down 6.18% to $68.33 at time of publication. The stock has a 52-week high of $95.32 and a 52-week low of $33.30.

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