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.
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.
Here are a few examples of conditional free trial offers:
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.
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:
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:
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.