The Federal Court has found that dating site eHarmony made misleading representations to consumers about the pricing, renewal and duration of its online dating memberships in statements online and in its app, in proceedings brought by the ACCC.
The Court found that eHarmony breached the Australian Consumer Law by engaging in misleading or deceptive conduct in relation to:
- offering free dating when a consumer could not engage in ongoing communication with other people for free
- the automatic renewal of memberships
- one-month memberships, when the minimum period consumers could sign up for was six months
- consumers being able to cancel their subscription early when they could not
- stating monthly subscription prices which did not mention an additional mandatory fee to pay monthly.
The Court also found that eHarmony had failed to display as a single price the minimum total amount a consumer would pay for their subscription alongside statements of how much a membership would cost per month, in breach of the Australian Consumer Law.
"Dating platforms are an important part of Australians' social lives. Many people use them to meet others and form valuable connections," ACCC Commissioner Luke Woodward said.
"The ACCC took this action after receiving hundreds of complaints from consumers relating to charges from eHarmony. Consumers were not adequately informed about their membership's duration or that the membership would automatically renew, including, for many, at a much higher price."
"The ACCC is concerned about subscription traps in digital services, and this decision highlights the need for clarity in ongoing consumer subscriptions. Obscuring the reality of purchases with confusing statements, hidden disclosures in small text and complex terms and conditions can mislead consumers."
Automatic membership renewal found to be liable to mislead the public
eHarmony was found to have engaged in conduct liable to mislead the public when it gave consumers the false impression that the subscription period for its premium membership was only for the selected 6, 12 or 24 months.
In fact, these premium subscriptions automatically renewed for a lock-in period of 12 months, at prices which could be up to five times higher than the price of the initial subscription, or hundreds of dollars more than the consumer initially agreed to. If renewal occurred, consumers often needed to keep paying for the full 12 months, even if they complained to eHarmony immediately afterwards.
eHarmony did not prominently disclose the automatic renewal, instead displaying the terms of the automatic renewal in small font late in the purchase process and in its terms and conditions.
"The ACCC is committed to taking action against businesses that engage in misleading conduct in the digital economy, including by using subscription traps and other dark patterns that unfairly impact consumer choice," Mr Woodward said.
eHarmony failed to specify a single price for its subscriptions and falsely advertised minimum monthly pricing
eHarmony also failed to specify the minimum cost a consumer would pay for a membership as a single figure, as is required under the Australian Consumer Law. eHarmony stated the 'from $xx/month' figure but this was not accompanied by the total cost consumers were signing up for in the initial subscription period, for example, for 12 months. eHarmony only stated this single price in small font late in the purchase process.
Additionally, by displaying prices as 'from $xx/month', eHarmony was found to have made misleading representations that the plans could be purchased by paying the stated amount on a monthly basis, when in fact a mandatory additional fee applied if consumers paid for their membership monthly. However, the Court found that from July 2024, when additional disclosures were added, the relevant pages no longer represented that subscription plans could be purchased by monthly payments of the stated amount.
"The Court's ruling underscores that when businesses advertise a price for a subscription divided into instalments, such as a price per month, the minimum total cost must also be clearly and prominently displayed," Mr Woodward said.
The Court will decide on penalties, consumer redress and other orders sought by the ACCC at a later date.
The below images show the process of signing up to an eHarmony premium subscription on a laptop. Though the specific applicable discount and colour scheme varies throughout, each image is broadly representative of how each step appeared from 2019 to 2024.
Subscription Page:
Payment Page:
Payment Page - cursor placed over payment frequency:
Payment Page - payment frequency option selected:
Background
The ACCC commenced legal action against eHarmony, Inc. in September 2023 after receiving hundreds of complaints from consumers about eHarmony since November 2019.
eHarmony Inc, a US-based company, provides dating services in Australia through the eHarmony website and app.
