Senate Judiciary Chairman Chuck Grassley (R-Iowa) is asking the Federal Trade Commission to investigate wedding planning website The Knot for possible fraud.
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- U.S. Sen. Chuck Grassley has asked the Federal Trade Commission to investigate wedding website The Knot for possible fraud.
- He said the request followed about 200 reports from whistleblowers and small businesses across the country.
- Not Worldwide denies the allegations, insisting it operates with transparency and integrity.
The chairman of the powerful Senate Judiciary Committee is asking the Federal Trade Commission to investigate allegations of fraudulent and deceptive business practices by international wedding planning website The Knot.
Sen. Chuck Grassley (R-Iowa) said in a news release that he was requesting an investigation after receiving “hundreds of reports from whistleblowers, including from Iowans.”
Not Worldwide denies engaging in fraudulent or deceptive business practices, and Grassley said he has not been contacted to discuss the matter.
The Knot provides wedding planning services to couples around the world and offers vendors such as caterers and photographers the opportunity to advertise on the site. According to the company’s website, the company connects more than 4 million users with more than 900,000 small businesses in countries across North America, Europe, Latin America, and Asia. The company says it operates in New York. Washington DC; Barcelona, Spain. Delhi, India. Galway, Ireland. And London.
Grassley said in a news release that he has received complaints of “repeated breaches of contract and intentional fraud.”
Mr Knott denies the allegations. Default judgment entered in Iowa case
Iowa’s senior senator said he first raised concerns about The Knot with the FTC in March. Since then, he said, his office has received nearly 200 allegations of wrongdoing against the company.
“These small businesses allege that The Knot did not advertise their businesses on its website in accordance with its contractual obligations, and that most of the leads it received were bogus or lacked legitimacy,” Grassley said in a letter to the FTC. “Additionally, they allege that The Knot promised discounted prices but did not add them to customers’ bills. Additionally, they have received warnings from several small businesses in Iowa who claim to have been defrauded by The Knot through these fraudulent and deceptive business practices.”
Knott said in a statement that it does not engage in fraudulent or deceptive business practices.
“Our mission has always been to build meaningful connections and support the wedding community with transparency, integrity and care,” The Knot said. “We are focused on innovation to help wedding professionals generate quality leads, grow their businesses, and support the planning of millions of couples each year. We remain focused on continually enhancing our products, support and safety standards, and every experience reflects the values on which our brand was built.”
At least one lawsuit filed in Iowa alleging fraud and breach of contract resulted in a default judgment against The Knot.
In August 2021, Des Moines-based Q Squared Systems LLC filed a small claims lawsuit seeking $3,050 in advertising fees it allegedly paid, $2,550 in statutory damages under the Iowa Consumer Fraud Act, and $900 in attorney’s fees. Knott did not respond to the lawsuit, and as a result, the court awarded Q Squared $6,500 plus interest.
Cornelius S. Qualley, listed in court documents and on the company’s website as the attorney and owner of Q Squared Systems LLC, did not respond to numerous requests for comment.
The company says it is working to improve the system.
Shannon Stefani, owner of Simply Stunning Events, a West Des Moines-based wedding planning company, said most of the conversations between wedding vendors related to The Knot revolve around spam emails.
“We do get spam, and a lot of people I talk to don’t fully trust[The Knot],” Stefani said.
Stephanie said that when she previously planned events at Glen Oaks Country Club in West Des Moines, 50 percent of her wedding event leads came from The Knot.
Kelly Thomason of Bella Flora Event Design in Urbandale, Iowa, said she is aware of the allegations against The Knot.
“Many local vendors have expressed negative feelings to me about these platforms, very similar to what is currently being claimed, but our experience has been very solid over the years,” said Thomason, a 22-year veteran of the industry. “Some would say that because of this, we have remained an iconic wedding platform for decades.”
Meanwhile, The Knot confirmed that it is working on improving its systems based on vendor feedback. New CEO Raina Moskowitz issued a letter to vendors in March announcing several internal process upgrades, including reducing spam and ghosting.
Kevin Baskins covers jobs and the economy for the Des Moines Register. Please contact kbaskins@registermedia.com.
