Tinder uses personalised pricing based on age brackets for its Plus service. Photo / Getty Images
Tinder uses personalised pricing based on age brackets for its Plus service. Photo / Getty Images
If you're over 30 and paying to use dating apps you could be paying more than someone in their 20s.
That's according to research from Consumers International and the Mozilla Foundation that looked into what users pay for Tinder Plus. The research revealed consumers are paying 65 per centmore than younger users on average. The research looked at pricing in New Zealand, Brazil, The Netherlands, South Korea, the US and India.
Although Tinder is free to use, people can opt to pay for Tinder Plus which gains users access to premium features.
The research revealed users in the countries in the 30-49 year age bracket were charged 65.3 percent more than 18-29 year olds - despite a US$24 million lawsuit for unfair pricing based on age in California.
The app uses what is called "personalised pricing", which can be done in a "fair and transparent way" according to a release from Consumer NZ. But the issue in Tinder's case is the lack of transparency for the reasons behind their different price brackets.
"Algorithm-based personalised pricing is when a business charges people different prices for the same goods or service. To figure out how much you're charged, the service accesses your personal data. The question is, when is it appropriate for different people to be charged different amounts? Why is it okay for Tinder to charge users different prices, but for a company like Bumble to have set pricing?" Dr. Cherie Lacey, Consumer NZ's investigative lead said.
A snapshot at different prices offered by Tinder for users of different ages in the same reason. Photo / Supplied
The research uncovered that some New Zealand users surveyed were quoted up to six times more than the lowest price.
"We know that Tinder is using age as a mechanism to set prices, but without full transparency from Tinder, it's hard to explain the reasoning behind the pricing. The research found that pricing is very complex, with New Zealand users quoted up to 25 unique price points for the same service," said Lacey.
In the survey, 56 per cent cited data privacy as a top concern, while 33 per cent highlighted the potential unfairness of charging different prices to different people.
A 51-year-old Tinder Plus user from Wellington quoted by Consumer NZ said he "had no idea that they used personalised pricing algorithms."
"I'm concerned about what sorts of personal data the app does access about me. It raises serious issues about privacy."
He added the personalised pricing should be "clearly communicated" to users so they can be informed about the technology they use.
A spokesperson for Tinder said: "As discussed on the Match Group Q4 2021 earnings, we have decided to move away from our aged-based pricing policy that provided a lower price subscription for our younger members aged 18-28. We've already discontinued aged-based pricing in the US, UK, Brazil and Australia, and we will complete this process by the end of Q2 2022 for remaining markets around the world."
