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Infostream is the operator of two sites that “cater to adults looking for a non-traditional dating experience.” For a fee, Seeking facilitates “mutually beneficial relationships” between members who refer to themselves as either a “sugar daddy,” “sugar mommy” or “sugar baby.” Whats Your charges a fee to allow members to “buy and sell the opportunity of going out on a first date.”When Pay Pay moved to dismiss Infostream’s complaint, it was quick to point to media sources that have associated the Infostream sites with purveying sexual services (see Pay Pal memorandum in support of motion to dismiss, n. One of the cited articles included alleged accounts of sex-for-pay encounters arranged through the Seeking site by graduates seeking to pay off student loans. As to Pay Pal’s argument that it had reserved the right to terminate any account “at its sole discretion,” and “for any reason at any time,” the court found that the contract included, by implication, an implied covenant of good faith and fair dealing.

Separate from the unusual nature of the site - which promotes adultery, cheating and/or deceit between long-term partners - Ashley Madison also offers several very unique features and benefits: The most interesting of the bunch is the "Affair Guarantee", where users can apply to get a refund for their three-month subscription (1000 credits, which is 9 CDN/9 USD) if they fulfill a long list of criteria, including: If after the three months the user still hasn't met someone in person to have an affair, the user can then apply to get their 9 USD plus taxes refunded to them, but "requests must be made within 30 days of Program expiration."Anyone can sign up for free, but it'll take buying some credits to really do anything with the site.

That kind of attention can be a concern not only for a dating site itself, but also for other online services that provide support to such sites, such as hosting companies and payment services. Sherman Act antitrust claims were dismissed (but with leave to file an amended complaint) because Infostream’s allegations that Pay Pal has an ownership interest in sites that compete with Infostream’s sites were deemed speculative.

So it’s not surprising that service providers seek to protect themselves contractually from the potential legal and business consequences of being associated with purveyors of shady, unsavory, or downright illegal services. Claims of common law fraud were dismissed (also with leave to amend), because Infostream did not adequately allege that it had detrimentally relied upon Pay Pal’s representations to it during the parties’ negotiations prior to the account termination.

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