Australia Federal Court rules eHarmony misled users on subscription terms

Australia’s Federal Court has found eHarmony engaged in misleading or deceptive conduct over its subscription services, including automatic renewals and pricing disclosures. The ACCC brought the case in September 2023, and penalties are yet to be determined.

The Federal Court of Australia has ruled that online dating platform eHarmony misled consumers by misrepresenting key aspects of its subscription services, the Australian Competition and Consumer Commission (ACCC) said on Tuesday.

The decision follows proceedings initiated by the ACCC in September 2023, which alleged that the US-based company breached the Australian Consumer Law through statements on its website and mobile application. The court found eHarmony engaged in misleading or deceptive conduct regarding free access, automatic renewals, membership length, cancellation rights and pricing disclosures.

The court concluded that eHarmony did not prominently disclose automatic renewal terms, instead presenting them in small font late in the purchasing process and in the terms and conditions. The company also breached the law by advertising monthly prices without clearly showing the minimum total amount consumers would pay over the full subscription term, the ACCC added.

“The ACCC is concerned about subscription traps in digital services, and this decision highlights the need for clarity in ongoing consumer subscriptions,” said ACCC Commissioner Luke Woodward.

The court will determine penalties, consumer redress and other orders sought by the ACCC at a later date. In an emailed response to Reuters, eHarmony said it was “carefully reviewing the Federal Court’s judgment” and considering its options.