Australia’s Federal Court has ruled that online dating platform eHarmony engaged in misleading or deceptive conduct over several aspects of its subscription services, according to the Australian Competition and Consumer Commission (ACCC).
The decision follows legal action launched by the consumer watchdog in September 2023, alleging that eHarmony had breached Australia’s Consumer Law through representations made on its website and mobile app.
The court found that the U.S.-based dating company misled consumers in areas including free access, automatic subscription renewals, membership periods, cancellation rights and pricing disclosures.
Court Finds eHarmony Hid Key Renewal Terms
One of the central issues involved eHarmony’s automatic renewal practices.
According to the ACCC, the court found that eHarmony did not clearly and prominently disclose automatic renewal conditions during the purchasing process. Instead, important renewal information appeared in small text later in the process and within the platform’s terms and conditions.
The ruling highlights growing regulatory scrutiny of digital subscription services, particularly when consumers may not realize that a payment arrangement will continue automatically.
ACCC Commissioner Luke Woodward said the regulator was concerned about what it described as “subscription traps” in digital services and said the decision reinforced the importance of clear information about ongoing subscriptions.
eHarmony Also Criticized Over Pricing Disclosures
The court also found that eHarmony breached Australian Consumer Law by advertising monthly subscription prices without clearly showing the minimum total amount consumers would have to pay over the full subscription period.
That distinction can be important for consumers comparing subscription offers. A monthly figure may appear relatively inexpensive while the actual commitment over the required membership term is substantially higher.
The ACCC said the court’s findings covered multiple representations made by eHarmony concerning its subscription services.
eHarmony Reviewing the Judgment
In an emailed response to Reuters, eHarmony said it was “carefully reviewing the Federal Court’s judgment” and considering its options.
The company has not yet indicated what further action it may take in response to the ruling.
The court has not yet finalized the consequences of the decision.
Penalties and Consumer Redress Still to Be Decided
The Federal Court is expected to determine penalties, potential consumer redress and other orders sought by the ACCC at a later stage.
That means the current ruling establishes the court’s findings on the alleged conduct, but the financial penalties and any compensation or other remedies for affected consumers have yet to be determined.
The case could also have broader implications for subscription-based digital businesses operating in Australia, where regulators have increasingly focused on whether consumers receive clear information about pricing, renewal terms and cancellation conditions.
What Happens Next
The next major development will be the court’s decision on penalties and consumer redress.
For consumers, the case serves as another warning to check the full terms of digital subscriptions, particularly automatic renewal conditions, minimum membership periods and the total cost of a commitment rather than relying only on an advertised monthly price.
The ACCC’s action also signals that subscription practices used by online platforms remain under close regulatory scrutiny in Australia.