With Free Offers, Devil is in Details, Task Force Warns

2/17/2010

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St. Louis, Mo., February 17, 2010— Free trial offers may sound good, but too often there are catches, clauses, and fine print that can end up costing consumers money and aggravation, the Consumer Fraud Task Force warns.

Companies making these offers are trying to market items ranging from books to magazines to cosmetic products. Consumers who accept these offers may be agreeing to purchase additional products and services if they do not cancel within a certain time frame.
 
In print offers, these terms may appear in fine print or as a footnote at the bottom of a page or on the back of the offer. In an e-mail, the details may be contained on a separate page that is easily skipped between the front page and the purchase page, if it is listed at all.

For example, you may have to contact the company to cancel during the trial period to avoid receiving additional goods or services or to avoid paying full price for what you already have received. If you do not cancel, you may be agreeing to let the company enroll you in a membership, subscription or service contract, and charge the fees to your credit card. While the offer may be free at first, many offers require that you pay for shipping and handling, which may allow sellers to obtain your credit card information.
 
In addition, it may be difficult to reach a live person to cancel a free trial offer. Consumers should expect pressure not to cancel if they call the company.
                                                                                       
One website for a weight loss and anti-aging pill indicates that you have less than five minutes to get your trial offer. There is a link to click to “Get Your Risk FREE TRIAL!” When you click the link, it takes you to the page where you enter your credit card information to cover shipping and handling. In small print on that page is information that the 14-day trial begins when you order the product, not when it is shipped. If you do not cancel, you will be shipped a supply of the product every 30 days and your credit card will be charged around $90 each month.

Another deceptive website promoted CDs that allegedly would help consumers obtain government stimulus grants. The CDs came with a 14-day free trial offer. However, the consumers weren’t told that the 14 days started from the time they ordered the products, not from when they received them. The consumers in this instance did not receive the product until well after the 14-day time frame and were charged for the CDs and enrolled in additional packages.

Before enrolling in any free trial offer, the Task Force advises people to ask the following questions:

  • Is the free offer related to a membership, subscription or extended service contract?
  • Do I have to contact the company to avoid receiving more merchandise or services? If so, how much time do I have?
  • Whom do I contact to cancel? How do I cancel? By letter? By phone? By e-mail?
  • Will I get other products with the free item? If so, will I have to pay for them or send them back if I don’t want them? How long do I have to decide before incurring a charge?
  • Is there a membership fee? If so, is it refundable?
  • Who is offering the trial, this company or someone else? If another, what is the name and address of the company?

         The Task Force previously has focused on work-at-home scams, home remodeling, sweepstakes offers, “phishing” (online identity theft), online auctions, collection agency tactics, unsolicited checks, extended auto warranties, online shopping, “as-is” used cars, foreclosure scams, “free lunch” senior scams, scams against business, credit repair scams and debt management advice.

To obtain general information regarding free trial offers, or if you think you may be a victim of a scam, you may wish to contact the Consumer Fraud Task Force:  
                                              
Missouri Attorney General’s Office - (800) 392-8222; www.ago.mo.gov.

Illinois Attorney General’s Office - (800) 243-0618;   www.illinoisattorneygeneral.gov

Federal Trade Commission - (877) FTC-HELP (382-4357); http://www.ftc.gov.
                                                     
U.S. Postal Inspection Service – (877) 876-2455; http://postalinspectors.uspis.gov.                                                     
                                                         
U.S. Attorney’s Office, Eastern District of Missouri - (314) 539-2200; www.usdoj.gov/usao/moe                                                                                 
BBB serving Eastern Missouri and Southern Illinois - (314) 645-3300; www.bbb.org

Contacts: Michelle Corey, President & CEO, 314-645-3300, mcorey@stlouisbbb.org or Scott Thomas, Trade Practice Investigator, 314-645-3300, tpc2@stlouisbbb.org

The BBB is a non-profit organization that sets and upholds high standards for fair and honest business behavior. The BBB provides objective advice, free business Reliability Reports, charity wise-giving reports, and educational information on topics affecting marketplace trust. Please visit www.bbb.org for more information.
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