The moment you discover that your free trial offer is actually costing you money is shocking, annoying, and might even move you to tears. If you can relate to this then you’re not alone; it’s a widespread consumer problem that the Federal Trade Commission (FTC) is actively pursuing. Thankfully there are several ways you can spot, stop and avoid these marketing scams.
Free trials have been popular with consumer marketing firms for decades. Everything from cosmetics to software is presented to us this way. They’re popular with marketers because they expose new products to a wide audience very quickly and cost effectively.
Consumers love them because they get free stuff. Who doesn’t like getting something for nothing? From a practical perspective a free trial gives us the opportunity to properly evaluate whether we can really use the widget.
Deception
Problems arise when deceptive practices bury the details of the free trial. When check-boxes are pre-filled it means you’re probably agreeing to hidden terms and conditions. It’s likely that you’re on the hook to pay for the product once the free trial period has expired, without being aware.
I was suckered into a not-so-free trial offer by a well known magazine. A telemarketer offered me a free children’s book as a gift with an annual subscription. Great, I thought. However, 30 days later a second book arrived along with an invoice. They actually wanted me to return the book at my expense! Of course I refused, and will never pay them a penny. The time and stress involved in fighting these deceptive charges is often greater than any financial cost.
Negative Option
When an offer automatically signs you up to purchase after the free trial it’s called a negative option. It means you have to take action to un-check a box or verbally decline without having requested anything in the first place.
Experience shows that customer retention rates are much higher when they do this. You buy more stuff when they pre-check the auto-buy box. They use consumer tendencies not to cancel before the end of the free trial period to full advantage, and we pay for it.
Avoid Costs Hidden in ‘Free Trials’:
- Research the company online before accepting a free-trial. Complaints are a red flag!
- Read the terms and conditions for the offer. Simply make yourself aware of the agreement so you will not be surprised by a credit card charge.
- Look for pre-checked boxes. If you don’t want or need the offer then take action to un-check the appropriate boxes.
- Mark your calendar. If you agree to a free trial and must take action before a certain date, then make sure you do so.
- Look for information on how to cancel future shipments. These are notoriously difficult to locate.
- Monitor your credit card statement.
Take Action
When presented with a surprise fee, you should first contact the merchant and try to resolve the issue directly. If unsuccessful, work with your creditor to stop payment. Charges for items you have not knowingly authorized are invalid. Beyond these steps, report it to the FTC at ftc.gov/complaint and file a complaint with the Better Business Bureau (BBB).
Your best defense to these deceptive marketing tactics is to be aware of what you are agreeing to.
Have you ever been charged a fee to go with your free trial?
My wife was caught by one of these traps. The first was called ShoppingAce and charged us $85 for a “yearly subscription” that was absolute garbage. ….all because she didn’t uncheck the box.
It’s a terribly deceptive practice. Iy you wanted to fight it you probably have a strong case.
It seems that any free trial that asks for billing info is really an offer that will sooner or later require payment that’s often automatically billed. I find that frustrating, and I often choose to skip these offers altogether if I think I might end up getting charged.
Often, the trial offers are in conjunction with something else that you’re purchasing. You think you have paid and then discover by not cancelling the trial, you’re on the hook for the next month or whatever. Marketers are like viruses in that they’re always figuring out how to get to people.
Can you generate a one-time use credit card number and then use it to sign up for these trials?
I don’t know the answer to that? Good question.
“They use consumer tendencies not to cancel before the end of the free trial period to full advantage, and we pay for it.”
Thank you. Because of this statement I cancelled a subscription for a software license I’m paying for via PayPal. It’s scheduled to renew in August 2012. I told myself I’d wait until then to cancel, but I’ll probably forget and lose $50 on a product I haven’t used in a year.
Great. I like it when I help people save money.
I never sign up for free trials from companies I don’t know. Some well known big companies have very bad reputations as well. Try canceling XBox live from Microsoft! Some years back, AOL was indulging in dirty practices. The company as an internet service provider is history now.
Most often free trials for the sake of getting free stuff is not worth it in my opinion.
True, there’s a lot of junk being pedalled out there. There are times when a trial can be useful. Like comparing software applications, for example.
I too stay away from Trial Offers that ask for billing information.
A long time ago I was suckered into a free/fee trial for cassettes (this was back in the day when you’d buy 10 for a penny). I was young and didn’t really understand their model of deception. I kept receiving tapes and had to ship them back or pay for them. I eventually paid for them since I thought it was too much of a hassle to ship them back. Now I’m uber cautious about “free” items.
I have experienced this too often. I finally just got to the point where I say no. Now I just have to train my husband to say no to the free offers.
I hate these fine print tricksters. I stay away from them at all costs. Awesome post!
Many free trials aren’t worth the hassle of having to cancel later. I usually only sign up for a free trial if I’m pretty sure that I’ll actually want the service.