Federal Court: Declares eHarmony Breached Australian Consumer Law

The Federal Court of Australia has declared that eHarmony, Inc. contravened multiple provisions of the Australian Consumer Law (ACL) between November 2019 and March 2024, specifically concerning misleading representations about free dating services, subscription prices, automatic renewals, one-month memberships, and cancellation rights. This declaration, formalising findings made in August, was issued in the case of *Australian Competition and Consumer Commission v eHarmony, Inc (No 2) [2026] FCA 1445*, following an action brought by the Australian Competition and Consumer Commission (ACCC). The court found that eHarmony misleadingly represented that Basic members could use its platform free of charge to find and maintain communications with potential romantic partners, when in fact users could not “date” without upgrading to a paid Premium membership. Additionally, the court declared that eHarmony misrepresented the monthly cost of various Premium subscriptions.

This declaration by the Federal Court against a prominent international online service provider like eHarmony underscores the ACCC's continued vigilance in enforcing consumer protection laws in the digital economy. It highlights the significant legal risks associated with deceptive marketing practices, particularly concerning subscription models and pricing transparency. For businesses operating in Australia, especially those with online subscription services, this case serves as a stark reminder of the need for absolute clarity and accuracy in all consumer-facing communications, from initial offers to cancellation terms. The ACCC's pursuit of penalties, which is still ongoing, further indicates that mere declarations of contravention are often just the first step, with substantial financial consequences likely to follow. The disagreement between the ACCC and eHarmony regarding the timing of declarations versus penalty proceedings also illustrates the strategic considerations in complex consumer law litigation.

The legal context for this matter is firmly rooted in the Australian Consumer Law (ACL), which is Schedule 2 to the Competition and Consumer Act 2010 (Cth). The specific contraventions declared by the Federal Court relate to sections 18 (misleading or deceptive conduct), 29 (false or misleading representations about goods or services), 34 (misleading conduct as to the nature of goods or services), and 48 (unsolicited consumer agreements, likely pertaining to automatic renewals). The Federal Court of Australia, as a superior court of record, has jurisdiction over such federal consumer protection matters. The ACCC, as the independent statutory authority, plays a crucial role in initiating and prosecuting these cases to protect consumers and ensure fair trading. The key parties involved are the Federal Court, eHarmony, Inc., and the ACCC. The outcome of the penalty stage of this matter is not yet reported, as eHarmony is considering an appeal and the ACCC is pursuing penalties.

Attorneys advising clients, particularly those in the digital subscription services sector or e-commerce, must meticulously review all marketing materials, terms and conditions, and user interfaces to ensure full compliance with the ACL. Specific attention should be paid to representations about “free” services, the true cost of subscriptions, automatic renewal mechanisms, and cancellation processes, ensuring they are transparent, accurate, and easily understood by consumers. Businesses should proactively audit their practices against sections 18, 29, 34, and 48 of the ACL to mitigate regulatory risk. Furthermore, practitioners should advise clients that ACCC enforcement actions often involve a two-stage process: liability findings followed by penalty determinations, and that declarations of contravention can precede penalty hearings, allowing for potential appeals on liability. The ongoing nature of the penalty phase in this case underscores the potential for significant financial repercussions beyond the initial finding of liability.