eHarmony Pays $2.2M To Settle Auto-renewal Lawsuit

MERCURY NEWS - Jan 10 - eHarmony agreed to pay $1.28M to settle a consumer-protection lawsuit filed by four California counties - Santa Clara, Santa Cruz, Napa, and Shasta - along with the city of Santa Monica over its automatic-charging practices. eHarmony will also pay $1M in separate restitution to customers who were unknowingly enrolled into a subscription between March 10, 2012 and Dec. 16, 2016. Eligible recipients will be sent notices of any monetary recovery, which will average about $30 for each affected customer.

by Robert Salonga
See full article at Mercury News

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Summarized by the Courtland Brooks team

Comments

[Mark Brooks]

Here's another great article on this news. http://www.lawfuel.com/blog/love-lost-eharmonys-expensive-auto-renewal-settlement/

the company agreed to:

1. Clearly and conspicuously disclose the renewal terms to consumers upfront;
2. Get consumers’ consent through “a separate check-box, signature, or other substantially similar mechanism” that relates solely to the automatic renewal terms and no other part of the transaction;
3. Send an e-mail confirmation of the transaction immediately after the contract is made; and
4. Provide a toll-free number, e-mail address, or other easy cancelation mechanism.

While California law already imposes some of these requirements in connection with automatic renewal or continuous service offers, the injunction is more prescriptive in certain respects, such as by expressly requiring a standalone check-box and an e-mail confirmation immediately after the transaction.

The settlement also resolves allegations related to California’s Dating Services Contract Law, which requires specific language informing a consumer of his or her right to cancel within three business days of the contract, and the Uniform Electronic Transactions Act, which requires contracts formed by electronic signature to allow for electronic cancellation. The settlement further prohibits eHarmony from attempting to collect past due membership fees from customers incurred prior to the effective date of the settlement.