eharmony: Court finds renewal and pricing practices misleading

Australia’s Federal Court has found that eharmony misled customers about automatic renewal and pricing. Subscriptions renewed for a further 12 months, in some cases at up to five times the price. The judgment is not final. eharmony has announced that it will appeal.

What happened

Australia’s consumer regulator, the ACCC, brought a case after hundreds of complaints about charges from eharmony. The court found that the company had breached Australian consumer law. Premium subscriptions automatically renewed with a 12-month commitment, often at a much higher price than for the initial period. Customers often had to pay for the whole year even if they complained immediately after renewal. Renewal terms appeared in small print late in the purchasing process. eharmony also did not state the total price as a single amount, and monthly payments incurred an additional compulsory fee of 3 Australian dollars.

What is documented

• The ACCC describes the complaints, renewal terms and the court’s findings.
• Australasian Lawyer reports on the formal declarations of contraventions, the fee and eharmony’s intention to seek an appeal of parts of the judgment.

What has not been established

• The judgment is not final. The outcome of an appeal has not been verified.
• A fine and any compensation to customers will be decided later. No amounts have been set yet.

What this means for you

1. Check the renewal period and renewal price, not just the introductory offer.
2. Work out the minimum total amount you are committing to, including any fee for monthly payments.
3. Turn off automatic renewal right after purchase if you do not want to commit to another term.