Australia Court Finds eHarmony Used Misleading Subscription Practices
Synopsis
eHarmony has been found to have misled consumers about pricing, renewal conditions and membership periods under Australian consumer law.
The Federal Court of Australia ruled that the subscription model for the online dating service eHarmony is misleading, dealing with ACCC complaints about eHarmony’s billing, renewals and terms and conditions in a dating service.
The ruling applies to the period November 5, 2019, to June 6, 2024. Over 1.3 million Australians would subscribe as of 5 November 2019 to the dating service’s entry-level membership, while 258,956 paid for premium subscriptions.
Of the total number of memberships, 44856 were renewed automatically on the terms and conditions of their subscriptions, which affected approximately one-fifth of the paying members for premium subscriptions.
In addition, 7,148 memberships were renewed automatically once or more.
The court ruled that eHarmony’s subscription model failed to provide sufficient information about automatic renewal. Some members received a year’s subscription at a higher undiscounted price, while others faced a fivefold increase in the price of their renewal subscription.
The analysis consisted of six sections, including an assessment of the offer of free online dating services, value for money, automatic renewals, 1 month membership and cancellation. ACCC received hundreds of complaints from consumers before the filing of the case in the Federal Court of Australia in September 2023.
Pricing and cancellation also examined
The court examined the subscription terms, which include automatic renewals of 12-month memberships and 24-month memberships. In addition, the ruling assessed the subscription model as misleading relative to monthly payments, as the terms and conditions of the membership did not disclose the additional cost that the users will be subjected to in the event of automatic renewal.
At the same time, the ACCC alleged that the subscription model failed to highlight inadequate disclosure of the prices for minimum subscriptions.
The case also highlighted issues raised in relation to automatic renewals of subscriptions. Premium subscriptions were offered for six, 12 or 24 months with auto-renewal.
The ruling comes as authorities have intensified scrutiny of subscription industries in Australia. At the same time, the case touches on business activities of multinational corporations and operates on a cross-border level between two countries, using digital platforms.
Business context
eHarmony is part of dating and video media holding company ParshipMeet Group. Dating & Video’s revenue from external customers reached 375 million euros in 2024, down 13 percent from 434 million euros in 2023.
The ProSiebenSat.1 group, which owns a majority in the company, reported that the segment recorded a decrease of 27 percent in external revenue in Q2 of 2025 to 71 million euros, compared to the same period of 2024.
Revenue for the first half of 2025 was equal to 154 million euros, down 24 percent year-over-year, while adjusted EBITDA reached 24 million euros.
Consolidated revenue for the 2025 financial year reached 3.675 billion euros, down 6 percent from the previous year’s revenue. The court proceedings will determine whether any further action is required, such as imposing fines. The defendant stated that it was considering the court’s ruling.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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