Deceptive Practices
Subscription Scams
These scams lure you into signing up for a "free trial" of a product but make it difficult or impossible to cancel, resulting in recurring charges.
How It Works
- You see an ad for a free trial of a product, often endorsed by a celebrity (whose image is being used without permission).
- To get the trial, you only need to pay a small shipping and handling fee, for which you provide your credit card details.
- Buried in the fine print is an agreement that if you don't cancel within a very short period (e.g., 14 days), you will be billed for a full-priced subscription.
- The process to cancel is often confusing and difficult, leading to multiple charges.
Red Flags
- "Free" offers that require your credit card for shipping.
- Terms and conditions that are hidden, hard to read, or confusing.
- Pre-checked boxes that sign you up for more than you intended.
- Difficulty finding information on how to cancel the subscription.
Prevention Tips
- Read the terms and conditions carefully before agreeing to any free trial.
- Research the company and product reviews online before providing payment information.
- Use a credit card rather than a debit card for online purchases, as it offers better fraud protection.
- Keep records of your sign-up date and set a reminder to cancel if you do not wish to continue.
Example Scenario
"A social media ad offers a "risk-free" trial of a new skincare product for just $4.95 shipping. After 14 days, you are charged $89.95 for a monthly subscription you didn't realize you signed up for."