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

Australian consumer watchdog says it received hundreds of complaints about the US-based dating site and its memberships

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Dating website eHarmony engaged in misleading and deceptive conduct over subscription traps that cost thousands of customers hundreds of dollars each, the federal court has found.

The Australian Competition and Consumer Commission (ACCC) sued the US-based eHarmony in 2023 over claims of providing free dating on its platform, and the information consumers were given on subscription costs and renewal terms when buying a premium subscription.

The ACCC said it had received hundreds of complaints from consumers about eHarmony and its memberships, including customers who were unaware they were signed up for automatic renewal until their credit cards were charged hundreds of dollars.

The regulator has referred to these practices as “subscription traps,” where customers think they’re signing up for a single-fee service, or where cancelling a service is difficult.

In a federal court judgment on Tuesday, Justice Christopher Horan found eHarmony engaged in misleading or deceptive conduct under Australian consumer law in six different aspects of its operations up until July 2024.

That includes representing that basic free membership allowed users communicate with other user for the purpose of dating, representations about its pricing in monthly versus yearly payments, and automatic renewal information.

Horan found eHarmony’s website contained the dominant message that the premium membership subscription plans were for finite periods of time when it was automatically renewed at a non-discounted price.

One user who gave evidence in the case deleted the app a couple of months after signing up, but then discovered her credit card was charged $478.80. When she cancelled her credit card, eHarmony eventually referred her case to a debt collection agency.

Another customer reported a similar case with $598.80 referred to debt collection, saying the incident had a “huge toll” on him.

The ruling stated that between 5 November 2019 and 6 June 2024, 1.3 million users from Australia registered for a basic membership, with 258,956 paying for a premium membership.

The number of users whose membership automatically renewed in the period was about 20% – at 44,856 – while 7,148 users had their subscriptions automatically renewed on two or more occasions.

Horan said he considered it “unlikely that all or most of those renewals involved a conscious election on the part of the member”.

“The fact that a premium subscription plan was automatically renewed on a non-refundable annual subscription at a higher undiscounted price was a significant matter that should have been disclosed more prominently and at an earlier point in the purchase process,” Horan stated.

The ACCC and eHarmony were asked to develop agreed or competing proposals for orders at a later date.

A spokesperson for eHarmony said the company evaluates and evolves its practices, and cooperated with the ACCC throughout the process.

“We have made several changes to the platform to improve the transparency of our offerings on our app and website,” the spokesperson said.

“We are carefully reviewing the federal court’s judgment and considering our options.”

ACCC commissioner Luke Woodward said the ACCC “is concerned about subscription traps in digital services” and the ruling highlighted the need for clarity in ongoing subscriptions.

“Obscuring the reality of purchases with confusing statements, hidden disclosures in small text and complex terms and conditions can mislead consumers,” he said in a statement.

“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.”