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It's Just Lunch International and its three New York state franchises exceeded the limit a customer can be charged for "social referrals," according to Attorney General Andrew Cuomo's office.
Many of the company's clients paid $1,500 for two six-month contracts that were signed at the same time and ran consecutively. This was done to circumvent a state law limiting the amount a customer can be charged for a social referral services contract to $1,000 a year, authorities said. The contracts also violated state laws by prohibiting customers from filing lawsuits against the company, and failing to include enough consumer-friendly provisions.
The Palm Desert, Calif.-based company has paid a $45,000 fine and $2,000 in costs to the state. Additionally, its three state franchises -- New York City, Albany and Buffalo -- will each pay a $6,000 fine plus $1,000 in costs. Clients who paid for the contracts on or after January 1, 2006 will also be provided with three free social referrals.
"With this agreement, It's Just Lunch will change its business practices and offer fair contracts that clearly spell out rights to New York consumers," Assistant Attorney General Russ Ippolito said in a prepared statement.
The company did not respond to calls seeking comment.
The Attorney General's Web site maintains a dating service consumer bill of rights.
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