FTC Fines Online Dating Site for Allegedly Creating Fake Profiles

The company supposedly charged customers $10-$30 a month to chat with computer-generated fakes.
2:28 | 10/30/14

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Transcript for FTC Fines Online Dating Site for Allegedly Creating Fake Profiles
questions about online dating. Proving what you see online, well, it's not always what you get. A company is being hit with a major federal fine for allegedly using fake profiles to lure paying customers. Gio Benitez is in the social square with the details. Good morning. Reporter: Good morning. This is the first of its kind federal fine. And the parent company calling itself one of the leading online dating companies. But the ftc said that website charged $10 to $30 a month so users could chat with computer-generated fakes. Online dating, a $2 billion industry. But this morning the federal trade commission taking bold new action against some of those sites how they make the money. More than a dozen dating sites, more than 12 million users, now facing more than half a million in fines after the ftc said the sites, run by parent company jdidating created fake profiles to entice users to upgrade. They do not disclose the subscriptions will be automatically renewed. They baited and switched. But they were fake profiles. Reporter: Sending messages is perfectly legal. Everyone one of the biggest out there, match.com -- More dates and more marriages. Reporter: Requires you to subscribe before you can send a message. But flirtcrowd.com used computer-generated profiles to designed to trick users. This is one of the profiles it found to be a fake computer-generated virtual cupid. Notice that name, heidihi. Make sure it's not a picture too good to be true. Reporter: Relationship experts Mike telling us key things to look for. If a site is trying to upsell you, that may be another red flag. Reporter: This case of fake love interests, the first time the ftc is taking legal action for dating deception. The wrong-doing will hopefully serve to place other companies on notice. And ABC news reached out to jdidating and we have not heard back. But the settlement order with the ftc prohibits the company from misrepresenting that service. Really interesting. This is the first of its kind case here.

This transcript has been automatically generated and may not be 100% accurate.

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