Free trials aren’t always free

Trying before you buy might seem like a no-brainer. But what starts as a free trial might end up costing real money.

A chance to try out something for free sounds great. What have you got to lose? If you're interested in a particular product or service, trying before you buy might seem like a no-brainer. But what starts as a free trial might end up costing you real money.

The Federal Trade Commission, the nation's consumer protection agency, wants you to know that some companies use free trials to sign you up for products but bill you automatically once the trial expires. That can cost you a lot of money as companies bill you every month until you take the steps to cancel the service.

Whether it's for a teeth whitener, vitamin or kitchen gadget, all free trials eventually end. Typically, if you don't want to buy what you've tried you need to cancel or take some other action before the trial period ends.  If you don't, you may be agreeing to buy more products.

Some dishonest businesses make it tough to cancel, hiding the terms and conditions of their offers in fine print, using pre-checked sign-up boxes as the default setting online, and putting conditions on returns and cancellations that are so strict it could be next to impossible to stop the deliveries and the billing.

With another strategy that marketers use, the "free trial" might come with a small shipping and handling fee. You think you're only paying a couple of dollars, but you're really giving over your credit card information, which can result in much higher charges after the trial ends.

How can you avoid the costs that might be hiding in free trials?

  • Find the terms and conditions for the offer. If you can't find them or can't understand exactly what you're agreeing to, don't sign up.
  • If you sign up for a free trial online, look for already-checked boxes. That checkmark might give the company the right to continue the offer past the free trial or sign you up for more products you have to pay for.
  • Your free trial probably has a time limit. Once it passes, without you telling the company to cancel your "order," you may be on the hook for more products. So mark your calendar!
  • Look for information on how you can cancel future shipments or services. If you don't want them, do you have to pay? Do you have a limited time to respond?
  • Read your credit and debit card statements as soon as they arrive. That way you'll know right away if you're being charged for something you didn't order. If you see charges you didn't agree to, contact the company directly.  If that doesn't work, call your credit card company to dispute the charge. Ask the credit card company to reverse the charge because you didn't actively order the additional merchandise. 

If you've been wrongly charged for a free trial offer, report it to the FTC at www.ftc.gov/complaint. You also can contact your local consumer protection agency, which you can look up at www.consumeraction.gov and file a complaint with the Better Business Bureau at www.bbb.gov .

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