Court finds eHarmony engaged in misleading conduct in relation to automatic renewal and pricing of its subscriptions

The Federal Court found that dating platform eHarmony, Inc breached the Australian Consumer Law by engaging in misleading or deceptive conduct in statements made on its website and app, in proceedings brought by the ACCC. The findings concerned representations about free dating when consumers could not in fact engage in ongoing communication with other members without paying, the automatic renewal of memberships, and the advertising of one month memberships when the minimum sign up period was six months.

The Court also found that eHarmony misrepresented that consumers could cancel their subscription early when they could not, and stated monthly subscription prices without disclosing an additional mandatory fee payable when a consumer chose to pay monthly rather than in a lump sum. In addition, the Court found that eHarmony failed to display, as a single figure alongside its monthly price statements, the minimum total amount a consumer would pay for the subscription, in breach of the single price requirement in the Australian Consumer Law.

ACCC Commissioner Luke Woodward said the action followed hundreds of consumer complaints about charges from eHarmony, and that consumers were not adequately informed about membership duration or automatic renewal, including renewal in some cases at a substantially higher price. The Court has yet to determine penalties and other relief, with the parties directed to file proposed orders following the liability findings.

The decision concerns a subscription service, but the underlying findings relate to general requirements under the Australian Consumer Law for price disclosure, renewal terms and the accuracy of free offer claims that apply across sectors offering subscriptions.