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Donors fight GoFundMe's 'deceptive' fees
12 Sep
Summary
- Lawsuit claims GoFundMe deceptively adds optional tips to donations.
- Donors allege tips are hard to remove and funds go to the company.
- Class action seeks jury trial to stop alleged deceptive conduct.
Donors have filed a class-action lawsuit against GoFundMe, alleging the company engages in deceptive practices by automatically adding "tips" to donations. These tips, which are presented as optional but difficult to remove, are claimed to benefit GoFundMe rather than the intended recipients. The lawsuit, filed in federal court in Illinois, asserts that donors are tricked into paying more than they intend.
Plaintiffs Sandra Donovan and Ebony Baker stated they paid money they did not knowingly authorize due to GoFundMe's business practices. The lawsuit challenges GoFundMe's representation of its fee structure, arguing that the company charges transaction fees to organizations while making optional "tips" appear as the primary revenue source for donors. Lawyers are seeking to certify the case as a class action and demand a jury trial.
A GoFundMe spokesperson refuted the claims, stating that the company's business model is designed to help people help each other. They emphasized that optional tips are voluntary, can be adjusted to zero, and help fund technology, customer support, and safety protections. The company maintains that the claims lack merit and that donation breakdowns are clear before completion.
