Federal Court: eHarmony Australian Consumer Law Declarations Issued

• The Federal Court declared eHarmony breached multiple sections of the Australian Consumer Law (ACL) between November 2019 and March 2024.
• Breaches included misleading representations about "free" services, subscription pricing, automatic renewals, one-month memberships, and cancellation rights.
• The specific ACL sections contravened were 18, 29, 34, and 48, as detailed in ACCC v eHarmony, Inc (No 2) [2026] FCA 1445.
• eHarmony intends to appeal some aspects of the liability judgment, which could impact future penalty determinations.
• The case highlights the ACCC's focus on transparent pricing, automatic renewal, and "free" claims for online subscription services.

This Federal Court ruling against eHarmony serves as a critical reminder for all online service providers, particularly those operating with subscription models, about the stringent requirements of Australian Consumer Law compliance.

The Federal Court of Australia has formally declared that eHarmony, Inc. engaged in multiple contraventions of the Australian Consumer Law (ACL) following an earlier finding of liability in August. These declarations, made in the case of ACCC v eHarmony, Inc (No 2) [2026] FCA 1445, specifically address misleading representations made by the online dating service concerning its offerings, pricing, and subscription terms. The court's decision solidifies the findings that eHarmony's practices were non-compliant with Australian consumer protection standards over a period spanning from November 2019 to March 2024.

Among the key findings, the court determined that eHarmony misrepresented its "Basic" membership as a free dating service. Users were led to believe they could find and maintain communication with potential romantic partners without charge, when in reality, engaging in actual "dating" activities necessitated an upgrade to a paid Premium membership. Furthermore, the platform's pricing disclosures for Premium subscriptions were found to be misleading. Specifically, the advertised monthly cost for six, 12, and 24-month plans was understated, as an additional mandatory $3 fee was applied to monthly installment payments. The company also failed to prominently display the single, total price for these services from November 2019 onwards.

The court also identified issues with eHarmony's automatic renewal policies and cancellation terms. Premium subscriptions, despite being presented as having finite durations of six, 12, or 24 months, were configured to automatically renew for a full 12 months at the regular, undiscounted rate unless members actively disabled this feature. Additionally, eHarmony made representations that consumers could acquire one-month Premium memberships, an option that was, in fact, unavailable. Finally, the dating service misled consumers about their ability to cancel Premium memberships during a subscription period without incurring ongoing liability for the remaining balance of the term.

The Federal Court's eHarmony Australian Consumer Law declarations underscore the rigorous application of the Australian Consumer Law, specifically sections 18, 29, 34, and 48. Section 18 broadly prohibits misleading or deceptive conduct in trade or commerce. Section 29 addresses false or misleading representations about goods or services, including their standard, quality, price, or benefits. Section 34 deals with misleading conduct regarding the nature of services, while Section 48 pertains to unsolicited consumer agreements and automatic renewals, ensuring transparency and consumer control.

The Australian Competition and Consumer Commission (ACCC) played a pivotal role in bringing these contraventions to light, initiating the proceedings that led to the Federal Court's judgment. A procedural disagreement arose between the ACCC and eHarmony regarding the timing of these formal declarations. The ACCC advocated for declarations to be made concurrently with orders for penalties and other relief, aiming for a comprehensive resolution. Conversely, eHarmony sought immediate declarations reflecting the liability findings, proposing to address the penalty stage only after the window for appealing these declarations had closed.

The Federal Court ultimately sided with making immediate declarations. This decision was based on the rationale that formalizing the liability judgment would provide clarity, enable eHarmony to pursue an appeal if desired, and precisely identify the contraventions that would be relevant when determining penalties and other potential orders. This approach ensures that the foundational findings of breach are established before moving to the complex process of assessing appropriate sanctions.

The legal proceedings against eHarmony are far from concluded, with significant stages still ahead. eHarmony has indicated its intention to seek leave to appeal certain aspects of the liability judgment, though not all of the court's findings. This potential appeal introduces an element of uncertainty, as the judge acknowledged that a different outcome at the appellate level could directly influence the nature and severity of any penalties or other relief ultimately imposed.

In anticipation of the penalty phase, the ACCC has stated its intention to seek discovery. This process is expected to be intricate and potentially protracted, as the court itself noted that it is "likely to be multifaceted and not necessarily quick or straightforward." The complexity arises from the need to gather comprehensive information relevant to determining the appropriate financial penalties and other remedial actions for the established breaches of the Australian Consumer Law.

Following the formal declarations, the Federal Court has ordered that the proceeding return for a case management hearing. This hearing is scheduled to take place no earlier than 28 days after the declarations were made, allowing time for the parties to prepare for the next steps, including eHarmony's potential appeal and the ACCC's pursuit of penalties.

This Federal Court ruling against eHarmony serves as a critical reminder for all online service providers, particularly those operating with subscription models, about the stringent requirements of Australian Consumer Law compliance. The case highlights the ACCC's proactive enforcement against misleading representations, especially concerning "free" trial claims, transparent pricing disclosures, automatic renewal mechanisms, and clear cancellation rights. Companies must ensure their terms of service, marketing materials, and user interfaces accurately reflect the true nature and cost of their offerings to avoid similar legal challenges.

The specific findings regarding eHarmony's automatic renewal practices and the lack of prominent disclosure for pricing are particularly salient. Businesses offering online subscriptions must review their processes to ensure that consumers are fully informed about recurring charges, the ease of disabling automatic renewals, and the actual cost structure, including any additional fees for installment payments. The ACCC's focus on these areas signals a clear expectation for transparency and fairness in digital consumer transactions, reinforcing the importance of robust Australia consumer law compliance.

Moreover, the ongoing nature of the case, with eHarmony considering an appeal, means that the interpretation and application of these ACL provisions could still evolve. This situation warrants continuous monitoring by legal counsel and compliance officers within the online services industry. The ACCC's successful pursuit of these declarations reinforces its commitment to protecting consumers from deceptive practices in the digital marketplace, making robust compliance frameworks an absolute necessity for any business operating in Australia, especially concerning ACCC enforcement online subscriptions.

Compliance officers and legal counsel for online service providers, particularly those with subscription models, should review their terms of service, pricing disclosures, and automatic renewal policies to ensure strict compliance with the Australian Consumer Law, especially regarding misleading representations, free trial claims, and cancellation rights, to mitigate risks of ACCC enforcement action. The ongoing appeal by eHarmony means the interpretation and application of these ACL provisions could still evolve, warranting continued monitoring.

Source: Original reporting via Australasian Lawyer.