(BBB)
It has never been as easy to subscribe to services online as it is now. From streaming entertainment services to buying groceries to subscribing to any number of things, the ability to automatically renew those memberships makes life easy for consumers. However, the St. Louis Consumer Fraud Task Force (CFTF) warns consumers to look for negative-option sales tactics some businesses use.
Better Business Bureau St. Louis, and agencies like the Federal Trade Commission (FTC) and attorneys general offices across the U.S., receive complaints from consumers who were automatically billed for a product or service they never wanted or realized that they signed up to receive. A negative-option sale is made when the consumer fails to specifically opt out of an additional purchase. The seller automatically takes that lack of a response to mean the consumer wants to keep buying the product or service
As a result, consumers can unknowingly be billed for items or services for many months or even years until they realize they are being charged. Consumers report that they sometimes have difficulty when they try to stop the subscriptions.
According to the FTC’s Consumer Sentinel Network, more than 167,000 complaints had been made about online shopping during the first two quarters in 2023. Half of those who reported a complaint lost money, with more than $207 million in losses reported
The FTC, in June 2023 sued Amazon for enrolling consumers in its Prime program without the consumer’s consent. The complaint also charges that Amazon set up online obstacles that made it difficult for consumers to cancel those subscriptions. The lawsuit alleges Amazon violated the FTC Act and the Restore Online Shoppers’ Confidence Act. The case is pending.
The FTC previously won restitution for consumers and had a ban on negative-option marketing placed on MyLife.com and its CEO as the result of a lawsuit filed in June 2020. The FTC alleged the website tricked consumers with “teaser background reports” and trapped them in difficult-to-cancel subscription programs.
The FTC is attempting to strengthen its Negative Option Rule. The updated rule would provide more protection to consumers, clarifying terms at enrollment and offering easy and immediate cancellation options and reminders of upcoming charges.
Illinois Attorney General Kwame Raoul is one of 26 state attorneys who support the updated FTC rule.
“Deceptive billing and auto-renewal tactics employed by certain businesses are among consumers’ top complaints to my office’s Consumer Protection Division,” Raoul said in a news release. “In many cases, consumers aren’t aware they have been charged until months after the transaction. These tactics frustrate consumers, and I applaud the FTC’s efforts to address this important consumer issue.”
The Task Force recommends the following to avoid unwanted subscriptions:
- Pay attention. Watch out for any pre-checked boxes that appear when you make an online purchase. Often, these will already be checked or selected; you must uncheck them to opt-out.
- Make notes. If you sign up for a free trial offer, cancel on time so you won’t be billed automatically. Put a reminder on your calendar to revisit these trial offers before they expire.
- Read the fine print. Be sure you fully understand the terms and conditions before you buy.
- Review your finances. Check your credit card and bank statements for any unauthorized or recurring transactions. Consider using a prepaid credit card, which may help minimize any unwanted recurring charges.
- Report problems. You can report bad actors to BBB, the FCC, the FTC, and your state’s attorney general.
The Task Force, formed in October 2002, is a coalition of local, state, and federal government agencies and nonprofit business and consumer groups in Missouri and Illinois that work together to protect consumer and donor rights and guard against fraud. The group has tackled predatory payday loan offers, tax scams, timeshare fraud, credit repair and foreclosure scams, bogus sweepstakes, internet sweetheart scams, phony grant scams, home remodeling, elder fraud, payment scams, and a variety of other issues.
For information or to report a scam, contact members of the Task Force:
- Better Business Bureau Serving Eastern and Southwest Missouri and Southern Illinois – (888) 996-3887; www.bbb.org
- Federal Trade Commission – (877) FTC-HELP (382-4357); www.ftc.gov
- Federal Bureau of Investigations - (314) 589-2500
- Illinois Attorney General – (800) 243-0618; www.illinoisattorneygeneral.gov
- Illinois Secretary of State - Securities Department - 800-628-7937
- Missouri Attorney General – (800) 392-8222; www.ago.mo.gov
- St. Louis Metropolitan Police Department - (314) 231-1212; www.slmpd.org
- U.S. Attorney, Eastern District of Missouri – (314) 539-2200; www.usdoj.gov/usao/moe
- U.S. Postal Inspection Service – (877) 876-2455; postalinspectors.uspis.gov
- U.S. Secret Service – (314) 539-2238; www.secretservice.gov
