eHarmony Misled Australians About the Price of Love, Court Finds

Australia’s Federal Court has found online dating platform eHarmony engaged in misleading or deceptive conduct by misrepresenting aspects of its subscription services, the country’s consumer watchdog said today.

The ruling followed proceedings brought by the Australian Competition and Consumer Commission (ACCC) in September 2023, which alleged the U.S.-based company had breached Australian Consumer Law through statements and disclosures made on its website and mobile application.

The court found eHarmony had breached the law in relation to free access, automatic subscription renewals, membership periods, cancellation rights and pricing disclosures, the ACCC said.

The case highlights regulatory scrutiny of so-called subscription traps, in which consumers may sign up for a service without fully understanding recurring charges, the length of their commitment or the conditions for cancelling.

The court found eHarmony did not prominently disclose that subscriptions would automatically renew. Instead, the renewal terms were presented in small print late in the purchasing process and in the company’s terms and conditions, the ACCC said.

Automatic renewal clauses can result in consumers being charged for additional subscription periods unless they cancel before a specified deadline. Regulators in several countries have increasingly focused on whether businesses make such terms sufficiently clear before consumers commit to a purchase.

The court also found eHarmony breached Australian Consumer Law by advertising monthly subscription prices without clearly stating the minimum total amount consumers would have to pay over the full subscription period, the ACCC said.

That distinction is important because a monthly price can make a subscription appear less expensive than the total financial commitment required when a consumer is locked into a longer membership period.

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

The regulator had also challenged eHarmony’s representations about free access and consumers’ ability to cancel memberships, with the court finding breaches in several areas of the company’s subscription practices.

The Federal Court will determine penalties, consumer redress and other orders sought by the ACCC at a later date.

Penalties in Australian consumer law cases can be significant, depending on the nature and duration of the conduct and other factors considered by the court. Consumer redress can include measures intended to compensate or otherwise assist affected customers.

In an emailed response to Reuters, eHarmony said that it was “carefully reviewing the Federal Court’s judgment” and considering its options.

The ruling comes as regulators globally increase scrutiny of digital subscription models, particularly where businesses use recurring payments, free trials or complex cancellation processes that can make it difficult for consumers to understand or end their commitments.

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