Aug 25 (Reuters) - Australia's Federal Court has found online dating platform eHarmony engaged in misleading or deceptive conduct by misrepresenting aspects of its subscription services, the country's consumer watchdog said on Tuesday.
The ruling followed proceedings brought by the Australian Competition and Consumer Commission (ACCC) in September 2023, which alleged the company breached the Australian Consumer Law through statements made on its website and mobile application.
The regulator said that
the court found the U.S.-based firm had breached Consumer Law by engaging in misleading or deceptive conduct relating to free access, automatic renewals, membership length, cancellation rights and pricing disclosures.
The court found that eHarmony did not prominently disclose the automatic renewal terms, and instead presented them in small font late in the purchasing process and within terms and conditions.
The court also found that the company breached Consumer Law by advertising monthly prices without clearly displaying the minimum total amount consumers would pay over the full subscription term, the ACCC added.
"The ACCC is concerned about subscription traps in digital services, and this decision highlights the need for clarity in ongoing consumer subscriptions," ACCC Commissioner Luke Woodward said.
The court will determine penalties, consumer redress and other orders sought by the ACCC at a later date.
In an emailed response to Reuters, eHarmony said that it was "carefully reviewing the Federal Court’s judgment" and considering its options.
(Reporting by Aamir Shaik Khalid in Bengaluru; Editing by Varun H K)
