Every day people have to face a lot of free trial' offers of different products when they go to a free site or social networking site. Many of the offers fall under the category of 'negative option' marketing and are going to end up bringing unwanted credit card charges, says CreditCards.com.
According to Southwick, the BBB has received thousands of complaints (more than 3,000) from people who signed up for different items such as acai-berry weight loss products or information on how to work from home and were charged month after month.
Thus, in May, the Federal Trade Commission (FTC) declared it would conduct a review of its "negative-option" rules, a process that could lead to tougher regulations on the practice. While negative-option marketing isn't considered illegal, it is tricking.
Usually consumers are given a free 30-day supply of a product for a nominal shipping fee of $5.95 and they often mistakenly believe it's a one-time purchase.
Here are given a few ways to prevent getting scammed.
First of all, people should conduct due diligence. They can get a database of reports on more than 400,000 companies, offered by the BBB, and a list of complaints from consumers who fell prey to negative-option marketing offers on the Consumer Web site. Then, in order not to get unwanted charges in future people should read the terms and conditions of an offer and to ask questions, especially when they need to cancel.
Next step is to read the fine print that may state the free trial period typically only lasts 12 to 14 days. It also can give you information on the terms of getting the product, subscription, cancellation, additional charges, etc.
Besides, you should watch your credit card statement closely. If you see any charges you don't recognize, call your credit card company immediately.
After having done all of the above, you continue to have problems with the company, then file a complaint with the BBB and the FTC, who both work to prevent deceitful and misleading business practices.
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