Match.com and its sister dating sites, like Hinge and Tinder, just agreed to pay $14 million after the FTC settled with them for using scammer accounts to lure people into paid subscriptions, hiding restrictive promo terms, and making cancellation so tricky you’d think you were breaking out of prison.
Even though Match.com settled with the FTC, that doesn't mean that consumers can't sue next in a class action lawsuit where consumers can recover even more money. If you’re thinking of bringing this class action, as the class representative, where you bring the lawsuit really matters in what results you can expect.
Connecticut vs. New York
In CT, the Connecticut Unfair Trade Practices Act ("CUTPA") lets consumers recover punitive damages with no cap. Plus, if you couple the lawsuit with another cause of action, like identity theft under CGS 52-571h, which provides for treble damages (triple your actual damages), the sky would be the limit as we recently saw when the CT Supreme Court ruled that a Plaintiff could recover both together (treble + punitive) in White v. FCW Law Offices. That means if the bad behavior is really bad, the award can climb into serious money. Plus, CUTPA provides for attorneys’ fees if you win.
While NY has a similar law, General Business Law § 349, that also allows treble damages, it caps them at just $1,000. Moreover, the statute does not provide for punitive damages where a separate cause of action that provides for punitive damages would be necessary to obtain them in NY and even then, NY courts keep them relatively low as compared to CT. In other words, in New York, even a slam-dunk case can hit a low ceiling.
When a company tricks consumers, with items like fake account messages, buried terms, and/or intentionally hard cancellations, which in turn hurts thousands of people, a class action in CT (in Fed Court based on the diversity that would likely exist) could mean a much bigger payout for consumers than the same case in NY.
Even more important is picking a firm that knows various state laws and can guide you to the right forum that gives you the best opportunity and knows how to work the law to your advantage.
So next time you hear about a big consumer case or deceptive business practice, remember the where and the who matter just as much as the what. The right state can mean the difference between a small payout and a meaningful recovery, and the right law firm will know exactly where and how to file to get you the best result.
If you believe you’ve been misled by a company’s deceptive practices, don’t leave money on the table. Contact Lieb at Law today to evaluate your potential class action claim.
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