eHarmony deceived Australian customers with ‘subscription traps’ that cost hundreds of dollars, court finds

The Australian competition watchdog has ruled that dating website eHarmony engaged in misleading and deceptive practices when it came to its subscription traps, costing thousands of Australian customers hundreds of dollars. The Australian Competition and Consumer Commission (ACCC) filed a lawsuit against the US-based dating site in 2023, citing hundreds of complaints from Australian users who were unaware they were automatically charged for renewals.

The ACCC referred to these practices as 'subscription traps,' where customers signed up for a single-fee service, or found it difficult to cancel a service. Justice Christopher Horan found eHarmony engaged in misleading conduct under Australian consumer law in six aspects of its operations until July 2024. These included the representation that basic free membership allowed communication with other users for dating purposes, false pricing information in monthly versus yearly payments, and automatic renewal information.

One user discovered her credit card was charged $478.80 after deleting the app, while another had $598.80 deducted and the incident had a "huge toll" on him. The court found that between November 2019 and June 2024, 1.3 million Australian users registered for a basic membership, with 258,956 paying for a premium membership, with about 20% of those renewing automatically.

The ACCC and eHarmony were asked to propose orders, and eHarmony stated they evaluate and evolve their practices and have made changes to improve transparency. The ACCC commissioner highlighted the need for clarity in ongoing subscriptions, stating that confusing statements, hidden disclosures, and complex terms can mislead consumers.