BBB: Free Trial Offers May Come with Hefty Price Tag

TYLER — The Better Business Bureau Serving Central East Texas is cautioning you about so-called “free trial offers.” Officials say the word “free” is frequently used by marketers to attract customers. In fact, according to the BBB, it is one of the three most consistently used words in advertising. While there are federal regulations which instruct companies how they can and can’t use the word, many companies disregard these regulations by not conforming to the guidelines. The BBB receives numerous calls from consumers who have been hit with unexpected charges after they have signed up to receive one of these free offers and reminds consumers to be extremely cautious when signing up for these types of promotions.

“Many free trial offers require you to divulge a checking account or credit card number so they can bill you for a nominal shipping and handling charge. However, that small fee is often just a ruse to get your account information”, said Mechele Agbayani Mills, President and CEO of BBB Serving Central East Texas. “Once the company has that information in their possession, many consumers notice huge charges on their accounts which either covered exorbitant shipping and handling charges or were simply made without their permission.”

BBB advises consumers to consider the following tips before taking advantage of free or low-cost introductory offers:

Before you do business with a company, call its customer service line posing as an existing customer (not as a new buyer). If you can’t get through to a live person, or if you can’t get a message returned, it’s probably not a good idea to do business with them. Similarly, if you e-mail the company with a question and you get no answer or you get a response from a free e-mail service like Yahoo, gmail or hotmail, that’s a huge red flag. Remember, legitimate businesses have their own domains. For example, when you get an e-mail from the East Texas BBB, the email address will end in ends in “@easttexas.bbb.org.”

Be extremely cautious about committing to trial offers, especially when asked to supply credit card information. The trials often require payment of the full product price in advance or automatically enroll you in an ongoing program as soon as the trial period is over.

Never allow your bank account to be debited when you do business with a company for the first time. Using a credit card gives you a right to dispute – or not pay – if a company tricks you. Debit cards give you no such right, and these large, multiple unexpected debits can trigger overdrafts.

Read the company’s privacy policy. Keep in mind, some companies may supply your contact information to other businesses.

Steer clear of companies that don’t have a physical address on their websites.

Ask the company if you must cancel by a certain date to avoid being shipped additional products or being charged for “buying club” memberships. Keep in mind that many of these types of companies ignore cancellation requests and/or make the cancellation process difficult.

Before signing up for a trial or reduced price promotion, go to http://www.bbb.org to check out the company’s BBB Business Review. For more tips on how to be a savvy consumer, go to the aforementioned website. To report a fraud or scam, call the BBB Hotline: (903) 581-8373.