Facts for Consumers

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Trial Offers: The Deal Is in the Details

Chances are you've gotten offers to try a product or service through a "free trial." Companies use these offers to sell a variety of items, from books and CDs to videos, magazines, hosiery and Internet access. But as part of a trial offer, a company also must tell you if any conditions are attached to the deal.

The Federal Trade Commission (FTC) carefully monitors the marketing practices in this area and offers this information to help you make wise purchasing decisions. Be a savvy consumer: read the fine print and ask questions. Trial offers can be a great way to try new products or services without making a long-term commitment to a membership, subscription or extended service contract. But by accepting the free trial offer, you may be agreeing to buy additional products and services - if you don't cancel.

What Does "No Risks or Obligations" Really Mean?

A company may claim its free trial offer has no risk or obligation for the consumer. And that may be true, but only if you take timely action to avoid future obligations. For example, you may have to contact the company to cancel during the trial period to avoid receiving additional goods or services or to pay for what you've already received. By not canceling, you may be agreeing to let the company enroll you in a membership, subscription or service contract, and to charge the fees to your credit card.

How Conditional Trial Offers Work

Here are a few examples of conditional free trial offers:

• A company offers you an introductory package of free books, CDs or videos. If you accept the offer, you may be agreeing to enroll in a club that will send you the products and bill you until you cancel.
• A company offers you the first three issues of a magazine for free. Unless you cancel after receiving the third issue, you may be agreeing to a one-year subscription that is automatically renewed each year.
• A company offers you free Internet service for 30 days or 700 hours, whichever comes first (30 days = 720 hours). Unless you cancel within the 30-day period or after you use the 700 hours, you may be agreeing to pay for continuous Internet service.
• A company offers you a free pair of pantyhose. By accepting the offer, you may be agreeing to receive a second pair as well. You also may be agreeing that, if you keep and pay for the second pair, the company may ship you a third pair. This may continue until you tell the company to cancel your account.

Make Sure You Know Who's Selling What

Sometimes, you call a company for one reason and at the end of the transaction, you may be told about a trial offer that another company is offering. This is called upselling. If you receive such an offer, pay close attention to the terms and conditions. Make sure you understand who you're dealing with and what you're agreeing to. By accepting the trial offer, you may be agreeing to let the company you called in the first place give your credit card account information to another seller.

If you don't cancel during the trial period, your credit card may be charged by the second seller for the product or service offered for the trial period. If you don't recognize the seller, you may think the charge is an unauthorized transaction. In fact, by accepting the trial offer, you may have agreed to pay if you didn't cancel before the trial period ended.

It's The Law

According to the law, companies must clearly and prominently disclose the "material" terms of their trial offers before you give your consent. Material terms may include:

• the fact that by accepting the trial offer, you're actually agreeing to be enrolled in a membership, subscription or service contract or paying for additional products and services if you don't cancel within the trial period;
• how much time you have to cancel before you incur charges;
• the cost or range of costs of goods or services you'll receive if you don't cancel during the trial period;
• how to cancel during the trial period;
• whether you'll be charged a non-refundable membership fee if you don't cancel within the trial period;
• whether fees will be charged automatically to the credit card you used to buy other goods or services.

Protect Yourself

Trial offers are promoted through all kinds of media: newspaper and magazine ads, TV and radio commercials, direct mail, and the phone and Internet. In print ads and offers, the material terms may appear in fine print as a footnote at the bottom of a page, or on the back of the offer. Read the whole offer carefully before you decide whether it's a good deal for you. When offers are made orally - whether by radio, TV or on the phone - listen carefully to the message. If you don't understand the details, ask the caller to repeat the terms and conditions as many times as it takes until you get it. If you're not satisfied with the responses, consider taking your business elsewhere. Never give in to pressure to agree to a deal.

Here are some questions you may want to ask the seller:

• Is the free trial 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? What is my deadline?
• Who do I contact to cancel? How do I cancel? By letter? By phone? By email?
• 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?
• How do I stop getting additional merchandise or services?
• Is there a membership fee? If so, is it refundable?
• Will you automatically bill my credit card for anything?
• Who is offering the trial - you or another company? What is the name and address of the company?

Where to Complain

If you have a problem with a trial offer, try to resolve it with the seller first. If you're dissatisfied with the response, contact your local Better Business Bureau or local consumer protection agency.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.