GoFundMe faces a lawsuit alleging it deceptively adds pre-selected 'tips' to donations, funneling money to the company instead of charitable causes, and makes these tips difficult for donors to remove. The suit also challenges the company's '0% platform fee' claim due to transaction fees.
GoFundMe is under fire due to a recently filed lawsuit accusing the fundraising platform of deceptively adding automatic 'tips' to donations that go directly to the company, not to help those in need. The lawsuit, filed by Sandra Donovan and Ebony Baker, claims these pre-selected tips are difficult for donors to remove, forcing them to 'hunt around' for an opt-out option. Furthermore, the suit challenges GoFundMe's on-site blurb stating it has a '0% platform fee' for organizers and 'relies primarily on the generosity of donors.' The plaintiffs argue this is 'false,' as GoFundMe charges significant transaction fees (2.9% plus $0.30 for individuals/businesses, 2.2% plus $0.30 for nonprofits) on each donation. The lawsuit seeks class-action status and a jury trial to stop GoFundMe's 'deceptive conduct.' In response, GoFundMe maintains that tips are 'completely voluntary,' easily adjustable to zero, and that a clear breakdown of costs is presented to donors, denying the claims as having 'no merit.'
