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The company runs an exclusive dating service which provides clients with introductions to potential romantic partners, hand-picked for them by an adviser rather than by automated online dating apps. This would include a degree of vetting and perhaps some dating coaching where appropriate. HMRC insisted that consultancy services should be regarded as the giving of reasoned, evidence-based intellectual advice.
HMRC said this meant data processing and the provision of information was to be read as a single composite phrase, whereas the tribunal found that it could mean two distinct activities. The use of intuition and experience as a tool to pick a match for a client did meet the tests to be regarded as consultancy. Although it uses intuition and experience to give advice it is not supplying the activity of using intuition and experience, rather it is merely using that as a tool to formulate the advice and to decide on the information it gives to the client.
However, overall, the tribunal decided the case in favour of HMRC.
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Operating an online dating website or app involves a variety of legal risks, involving consumer privacy, prohibited advertising techniques, and FTC guidelines. Kronenberger Rosenfeld helps owners of online dating websites and apps reduce their legal risks in this complicated area. Submit your case online. The online dating industry generates billions of dollars per year in revenues, and there are thousands of different companies running online dating websites and mobile apps.
Because of the massive business opportunity, companies are continually testing new business models and technologies to facilitate online dating. There are also significant legal risks for businesses running online dating websites and apps. The large amount of personal information that consumers upload to online dating services creates a legal minefield for businesses. For example, competition creates incentives for profile sharing among different dating services in order to quickly amass large groups of user profiles; however, inadequate disclosure of information-sharing practices can result in significant liability under state privacy laws.
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