Australia’s Federal Court has ruled that dating platform eHarmony misled consumers about important aspects of its subscription services, dealing a fresh blow to the growing problem of confusing online membership practices.
The case was brought by the Australian Competition and Consumer Commission (ACCC), which accused eHarmony of breaching Australian consumer law through the way it presented subscription information on its website and mobile application.
The court found problems with several aspects of the company’s practices, including disclosures about automatic renewals, membership periods, cancellation rights, free access and pricing.
According to the ACCC, eHarmony did not make its automatic-renewal terms sufficiently prominent. Instead, important details appeared in small print later in the purchasing process and within its terms and conditions.
The court also found that the company’s monthly price advertising did not clearly show consumers the minimum total amount they would be required to pay for the full subscription period.
The ruling comes amid growing scrutiny of subscription services and so-called “subscription traps,” where consumers may find it easier to sign up for a service than to understand its long-term costs or cancel it.
ACCC Commissioner Luke Woodward said the decision highlighted the need for businesses offering ongoing digital subscriptions to provide clear information before consumers commit.
See also: MTN Plans R6bn Buyback After 21% H1 Profit Jump
The court will determine penalties, potential consumer compensation and other orders sought by the ACCC at a later date.
eHarmony said it was reviewing the judgment and considering its options.
The ruling serves as a warning to online subscription businesses that pricing, renewal and cancellation conditions cannot simply be buried in fine print.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
