eHarmony's subscription trap exposed by Federal Court

Australia's Federal Court has found dating platform eHarmony breached Australian law by misleading consumers about free access, automatic renewals, membership length, termination and pricing.

The Australian Competition and Consumer Commission (ACCC) announced the news on Tuesday. 

The ruling follows proceedings the ACCC launched against the US-based company in September 2023, alleging its website and app statements misled paying members about the real cost, and duration of, their subscriptions.

What the court found against eHarmony

The court found eHarmony created the false impression that premium memberships ran for a fixed initial term of six, 12 or 24 months. In fact, the subscriptions automatically renewed for a lock-in period of 12 months, at prices up to five times higher than the initial sign-up fee.

Renewal terms were also not prominently displayed. Instead, they appeared in small, grey font late in the purchase process, and also in the lengthy terms and conditions.

The court further found eHarmony misled consumers by advertising "free dating," when Basic members could not actually hold ongoing conversations with other members without upgrading to a paid plan. 

Separately, the company was found to have stated monthly prices without disclosing mandatory additional fees, and to have failed to display the total minimum price a consumer would pay for their subscription.

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eHarmony vs ACCC findings  

About 1.3 million Australian users registered for an eHarmony Basic membership between 2019 and 2024, the court found. 

In one case, a woman signed up for a six-month plan at a discounted one-off payment of $155.64. When the term expired, eHarmony automatically renewed her membership and charged her card $478.80. 

After she cancelled her card and declined to pay, the company referred her to a debt collection agency.

ACCC commissioner Luke Woodward said dating platforms play an important role in Australians' social lives, but consumers were entitled to clear information about what they were signing up for.

"Consumers were not adequately informed about their memberships' duration or that the membership would automatically renew, including, for many, at a much higher price," Woodward said.

The Federal Court will determine penalties at a later date.