Design Justice & Tinder: Unveiling and Addressing Unfair Pricing Algorithms

Design Justice & Tinder: Unveiling and Addressing Unfair Pricing Algorithms

Exploring the intersection of HCI and Design Justice, this Master's in HCI case study delves into online dating, focusing on Tinder's pricing algorithm—a pivotal element shaping the user experience and raising ethical considerations in digital design.

In the rapidly evolving digital landscape, online dating apps have become a prominent platform for social interaction and romantic pursuits. These apps, while offering new avenues for connectivity, have increasingly come under scrutiny for perpetuating and exacerbating societal inequalities. The criticism is not unfounded, as many of these platforms implement algorithms and design practices that inadvertently mirror and reinforce societal biases. This scrutiny highlights a growing concern about digital products' ethical implications and societal impact.

In this evolving digital era, the concept of Design Justice is essential, especially in the realm of dating apps. This case study focuses on Tinder's pricing algorithm, highlighting the urgent need to address inherent biases and inequalities in app design. It emphasises the integration of Design Justice principles, advocating for inclusive and equitable technology that serves all users without bias. By scrutinising Tinder's methods, this study aims to illuminate the wider impact of design choices in online dating and the crucial need for fair, inclusive design practices.

History of Online Dating

Historical Evolution of Online Dating



With the introduction of the first matchmaking website, online dating's popularity has surged, challenging traditional methods of finding partners since World War II. This shift is supported by a 2019 Stanford study, reflecting the critical need for fair and just designs in dating applications.

Facebook's Impact and Emergence of Phone Applications (2005)


Facebook's debut in 2005 paved the way for phone applications, changing the dating landscape. Tinder and Hinge, released in 2012, introduced novel features and algorithms, such as Tinder's swiping mechanism and Hinge's Gale-Shapley algorithm, focusing on compatibility through shared interests.

Operation Match: Pioneering Computerised Matchmaking (1965)




In 1965, Harvard students introduced Operation Match, the first computer dating service. Users completed a 150-question survey by post, and the computer assigned potential matches. This marked the initial foray into computerised matchmaking.

Bumble: Innovation in Female-First Messaging (2014)


Whitney Wolfe Herd's departure from Tinder led to the founding of Bumble in 2014, known for its female-first messaging policy. This further diversified the online dating landscape, highlighting the impact of individual contributions.

Designing Ethical and User-Centric Digital Spaces


The evolution of online dating reflects the continual need for user-centric and ethically designed digital spaces. Dating platforms actively address bias and discrimination, underscoring the dynamic nature of this ever-evolving landscape.

Match.com: Trailblazing Online Dating Website (1995)

The launch of Match.com in 1995 by Gary Kremen revolutionised online dating. Initially free and ad-based, it transitioned to a subscription model, amassing over 100,000 users in its first six months. This pivotal development coincided with the spike in Internet and computer access during the 1980s and 90s.

Current Trends and Market Statistics (2022)

The global use of dating apps exceeded 300 million, generating over $4.9 billion in revenue in 2022. Tinder and Bumble emerged as the most downloaded applications. Current trends emphasise niche markets, advanced technologies like AI and machine learning, and a growing emphasis on user safety, privacy, diversity, and inclusion.

Global dating app revenue 2015 to 2022 ($bn)

Global dating app users 2015 to 2022 (mm)

Navigating Love in the Digital Age: The Impact of Modern Algorithms

In the quest for a perfect partner, the landscape of romantic connections has evolved. Traditionally, chance meetings or interventions by a third party played a role. Today, dating apps act as intermediaries, utilising sophisticated algorithms to enhance the matchmaking experience.

Algorithmic Precision

— Sharabi

Dating websites and apps employ mathematical algorithms to curate matches, moving beyond random selections. These algorithms consider crucial data points like age, location, and preferences to present users with potential partners likely to result in positive romantic outcomes.

Enhancing the User Experience:

Matching algorithms have enabled dating sites to offer premium services. Users paying higher fees often get enhanced visibility for their profiles, increasing their chances of finding a match. This model has been instrumental in enhancing user engagement and satisfaction.

The Paradox of Choice:

An interesting phenomenon in online dating is the paradox of choice. While these sites provide an abundance of options, it can sometimes lead to user overwhelm and dissatisfaction. Users may become less selective, deviate from their preferences, and make less optimal choices.

Stages of Online Dating

— Sharabi

The online dating journey unfolds through profile creation, matching, messaging, and, ideally, in-person meetings. Matching algorithms play a pivotal role in this process, enhancing user engagement and satisfaction while enabling platforms to offer premium services at higher fees.

AI and Matchmaking:

The task of filtering and sorting through potential matches is increasingly handled by Artificial Intelligence (AI). AI-driven algorithms aim to connect users with compatible partners, offering a more personalised and efficient dating experience.

Addressing Choice Overload:

To combat choice overload, dating sites began experimenting with compatibility matching in the early 2000s. This approach narrows down the dating pool, focusing on more meaningful connections rather than an abundance of choices. It aims to streamline the search process, making it more manageable and aligned with users' preferences for a partner.

This evolution of algorithms in dating apps reflects a significant shift in how romantic connections are formed in the digital age, emphasising the need for balanced, user-centered design in matchmaking technology.

Unveiling Tinder's Pricing Disparities: A Deep Dive

Research Highlights:

  • Study Origin: Building on CHOICE's 2020 research, the Mozilla Foundation and Consumers International conducted a comprehensive study to assess Tinder's premium service pricing.

  • Users, unbeknownst to them, maybe charged up to five times more for the same subscription, with prices varying significantly within a single country.

  • Global Scope: The research spanned continents, including Brazil, India, the Netherlands, New Zealand, the Republic of Korea, and the U.S., uncovering vast differences in pricing strategies within and across these regions.

Key Findings:

  • Age-Based Pricing Discrepancy: Tinder's pricing algorithm considers user data such as age, resulting in discriminatory "differential pricing" based on age, race, gender, and sexual orientation. The study revealed stark pricing differences based on age, with users between 30-49 years old being charged an average of 65.3% more than those aged 18-29.

  • Diverse Pricing: The study, spanning 5 continents, identified as many as 31 different price points for Tinder Plus, with users charged significantly different amounts for identical services. In the Netherlands, Tinder Plus prices ranged from $4.45 to $25.95, while in the U.S., the range was from $4.99 to $26.99, indicating significant variability in the same country.

  • Price Variations and Consumer Reaction: The discovery of up to 31 different price points for the same service within a single country raised concerns among consumers about the fairness and transparency of Tinder's pricing model.



Legal Implications:

  • Potential Age Discrimination: The pricing strategy raises potential legal issues under laws such as the Australian Age Discrimination Act 2004 and the UK Equality Act 2010, which protect against unfair treatment based on age.

  • Challenge in Pricing Justification: Legal experts argue that differential pricing based on age requires justifiable reasons, especially under anti-discrimination laws.


Tinder's Response:

  • Discount Acknowledgment: Tinder acknowledged offering "discounted subscriptions" to younger users but provided limited details about the criteria or justification for these discounts.

  • Response to Pricing Queries: Despite inquiries and legal challenges, Tinder's responses have been limited in addressing the specific reasons behind their varied pricing model.



Legal History:

  • Age Discrimination Lawsuit in California: Tinder faced a lawsuit in California with a settlement of $24 million for charging users over 28 years old double the amount compared to younger users.

  • Settlement Reversal and Policy Change: Following the 9th Circuit's reversal of the settlement in August 2021, Tinder announced plans to discontinue age-based discounts in future pricing strategies.



User Concerns:

  • Survey Insights: A consumer survey related to the study showed that 97% of respondents were concerned about personalised pricing, and 83% supported having the choice to opt out of such pricing models.



Price variations by age (A consumer investigation into personalised pricing)

Data Protection Concerns:

  • Use of Personal Data: The case raised critical concerns about the use of personal data for targeted pricing, potentially violating data protection laws if users haven't authorised this type of data processing.

  • Lack of Transparency: Tinder's terms of use and privacy policy do not clearly state the use of personal data for determining pricing, leading to questions about the ethical implications and legality of such practices in user data handling.




The findings shed light on the intricate pricing strategies employed by dating apps, emphasising the need for transparency and ethical considerations in user interactions.

Guiding Principles for Ethical Design: Addressing Tinder's Unfair Pricing Algorithm

Inclusivity:

  • Definition and Importance: Inclusivity in design ensures that technology is accessible to people of all ages, races, genders, abilities, and identities. The Inclusive Design Research Centre (IDRC) defines it as considering the full range of human diversity.

  • Application in Age-Related Design: Inclusivity means creating digital tools that cater to various age groups without biases or stereotypes. This approach opposes discriminatory practices, ensuring that technologies serve everyone equitably, regardless of age.

Fairness:

  • Fair Distribution and Participation: Fairness in design involves the equitable distribution of benefits and burdens, ensuring meaningful participation in design decisions, and recognising community-based traditions and practices.

  • Case Study Application: In the context of Tinder's pricing algorithm, fairness would entail charging all users equally, using impartial algorithms that don't discriminate based on characteristics like age. Fair design ensures equal access to app features for all users.




Accessibility:

  • Ensuring Universal Access: Accessibility emphasises the need for technology to be usable by all, regardless of abilities or financial status. It's about aligning the design or system with the individual's requirements, often a legal obligation.

  • Implications for Tinder: In the case of Tinder, accessibility means providing equal access to the app’s features and functions for all users, regardless of age or financial capability.

Intersectionality:

  • Understanding Compound Discrimination: Intersectionality recognizes that individuals experience multiple forms of discrimination simultaneously, such as ageism, sexism, racism, and ableism.

  • Relevance in Tinder's Case: For Tinder, considering intersectionality is vital, as older users, especially those belonging to other marginalized groups, may face amplified discrimination. An inclusive algorithm should avoid perpetuating discrimination based on various identity aspects.

Accountability and Transparency:


  • Responsibility of Designers: Designers and developers are accountable for the societal impact of their work. Accountability would require entities like Tinder to take responsibility for any discriminatory impacts of their algorithms.

  • Need for Openness: Transparency involves making design processes and decisions clear to all stakeholders. For Tinder, this means disclosing how prices are determined, including any age-related factors, allowing users to make informed decisions about purchasing premium services.



Recommendations: Addressing Tinder's Age-Related Unfair Pricing

Implementing Participatory Design:

  • Engaging Diverse User Groups: To address the issue of age-related unfair pricing, Tinder should adopt Participatory Design, involving users of different ages in the development process. This approach aligns with the Design Justice principle of involving communities in design decisions.

  • Understanding User Perspectives: Conducting focus groups with users from varied age groups will provide Tinder with invaluable insights into their experiences and feedback on the pricing structure.

  • Reflecting User Needs: This inclusive approach ensures the development of a pricing model that considers users' unique experiences, needs, and viewpoints across different age demographics.



Continuous Monitoring and Evaluation:

  • Ensuring Equitable Pricing Over Time: Tinder should establish a system for the ongoing assessment of its pricing algorithm. This step is crucial to ensuring the algorithm evolves and remains fair, avoiding the perpetuation of age discrimination.

  • Responsive Adjustments: Regular monitoring allows for timely adjustments in response to shifting user needs and market dynamics.

Providing Accessible Pricing Options:


  • Discounts and Promotions: Offering discounts or promotions to users who might struggle to afford the full price of premium features is a key strategy. This approach makes the app more accessible to users with financial constraints.

  • Alternative Access to Premium Features: Creating varied pathways for users to access premium features ensures that the app remains inclusive and equitable for all, irrespective of financial status.

Towards a More Equitable Digital Dating Landscape

The case study of Tinder's age-related unfair pricing algorithm highlights a significant violation of Design Justice principles, notably in terms of inclusivity, fairness, transparency, and accountability. This algorithm disproportionately affects older users, creating a digital divide by imposing higher costs for the same features, leading to an inequitable user experience based solely on age. Furthermore, the opacity of Tinder's pricing model and the lack of participatory design in the app's development exacerbate these disparities.

Call to Action for Tinder and Other Dating Apps:

  • Adopting Design Justice: To rectify these issues, Tinder, along with other dating applications, should embrace a Design Justice framework. This involves adopting age-neutral pricing models, actively involving older users in the design process, and maintaining transparency regarding their pricing algorithms.

  • Emphasising Key Principles: By prioritising inclusivity, fairness, transparency, accountability, and participatory design, dating apps can cultivate more equitable and accessible user experiences for all, irrespective of age.

Potential Benefits of Implementing Recommendations:

  • Broader User Base and Increased Satisfaction: By offering a more inclusive and equitable user experience, dating apps can attract a wider demographic, thereby enhancing user satisfaction.

  • Setting Industry Standards: Prioritizing Design Justice in the dating app industry can serve as a model for other sectors, contributing to a broader movement towards fairness and equality in society.

This case study underscores the importance of integrating Design Justice principles into digital product development. By doing so, companies like Tinder can not only improve their service offerings but also contribute to a more inclusive, fair, and just digital environment. The implementation of these recommendations holds the promise of transforming the online dating sphere into a space that respects and caters to the diversity of its user base, setting a precedent for ethical practices in the tech industry.