ACCC targets automatic renewals buried in free trial agreements
The ACCC sued eHarmony over hidden automatic renewals and now targets this practice across the economy.
The ACCC successfully sued eHarmony for tricking customers about membership costs and how long they would last. The key issue was automatic renewals hidden deep in the terms and conditions.
Thousands of customers are believed to have been caught by this tactic. ACCC chair Gina Cass-Gottlieb refuses to use free trials herself.
She calls them predatory because of this practice. The watchdog is expanding its focus to other sectors.
It is targeting misleading Black Friday and Christmas sales. It is also targeting fake scarcity warnings.
Officials want penalties to exceed the cost of doing business. This would make it a real deterrent.
Legal experts warn that subscription businesses across Australia should brace for much tighter scrutiny going forward.
- eHarmony
- Company sued
- Gina Cass-Gottlieb
- ACCC chair
- Must exceed cost of doing business
- Penalty threshold
Why it mattersAutomatic renewal traps cost Australians millions every year. The ACCC's case shows the watchdog now has legal power to stop them.
AustraliaAustralian subscriptions should become clearer to use, with heavy fines now deterring companies from burying auto-renewals in small print.
✓ Claims checked against the source and corrected before publish. checked 12 d ago
