Free trial scams have taken millions from Canadians’ pockets, according to Canada’s Competition Bureau. In fact, they list free trial traps as one of the most prevalent and sneaky “scams on the horizon”. All the more reason to find out more and protect yourself.
While Consumer Protection BC doesn’t have the authority to deal with scams, we have put together three types of free trial traps along with some tips to help you navigate them.
First of all, what is a free trial trap?
The Competition Bureau says that with free trial scams “consumers are enticed, usually via social media advertising or fake news articles, to sign up for a free trial or pay a small fee to access an offer.” Free trial traps are becoming more and more tricky to decipher from legitimate businesses. The savvier consumers become to these kinds of scams, the more creative these scammers have to be in order for them to work.
The websites do a good job appearing to be professional and legitimate but there are some warning signs linked to free trial traps.
Red flags:
- They may be advertised on social media or come in the form of a quiz or survey appearing to be from a reputable internet provider or financial institution.
- They claim to offer a “free gift” upon completion of a quiz or survey in exchange for your time.
- They require minor purchases to activate the free trial.
- They require an email and home address to see the price of items – this may then result in being billed for products you never ordered.
- They make claims of limited time offers or products.
- The terms and conditions acceptance box is pre-checked.
- There are misspelled common words in the URLs.
- You can’t find the terms or conditions, including how to cancel, or there are hidden links to the terms and conditions.
If you have agreed to a free trial that turns out to be a scam, it can be difficult to get a refund or know how to proceed. Read on to find out about what you can do.
I’m stuck in a free trial trap, what do I do now?
Free trial traps and scams of this nature can come in a variety of formats. Here some scenarios that we’ve been hearing about and what you can try to do:
Scenario 1: You have unwanted charges on your credit card from a “free trial”
You found a “free trial” for a skin cream or other beauty product through a social media site and they request your credit card information for a small shipping and handling fee. After your trial period is over, you notice other charges on your credit card from the company that you didn’t know about.
What can you do?
1. Cancel:
Officially cancel the contract. While it probably doesn’t seem like you signed a contract, by providing your credit card number, you likely agreed to some terms and conditions without realizing it. You can use a cancellation form on this page as a template and send a copy directly to the business by email and registered mail in an attempt to prevent any further orders. This is an important first step because your credit card provider will sometimes request written proof that you made efforts to cancel the contract or resolve the issue with the business directly before they can help you.
2. Record:
Keep track of all your communication with the business. Try to keep the communication in writing and make sure you save it all in case you need proof of your interactions moving forward.
3. Contact your credit card provider:
Talk to your credit card provider to request a reversal of the charges. You may also want to request that they block any further withdrawals from the company. Include the following information:
- Business’s name
- Date the contract started
- Amount charged
- Description of goods/services
- Reason for cancellation
- Copy of your cancellation attempt (ex. cancellation form)
4. Report:
Report the activity to the Canadian Anti-Fraud Centre so that they are aware of the scam.
Scenario 2: You are being invoiced for stuff you didn’t order
You found a website with some products that you may be interested in. You notice that none of the prices can be viewed unless you enter your email/home address, so you enter your information to see the prices. You never purchased anything but you receive an invoice and a notification that your item has been shipped. Then you get invoices to your email/home address claiming you owe money to this business and it may go to collections if you don’t pay.
What can you do?
1. Don’t panic and pay:
Take a minute to assess the situation first. If this is a scam, you don’t need to pay anything to anyone. Do some research to find out what’s happened and what your rights are in this situation.
2. Cancel:
Officially cancel the contract. Even though you never agreed to purchase an item, it might be a good idea to send a cancellation form to the business in writing. You can use a cancellation form on this page as a template and send a copy directly to the business by email and registered mail in an attempt to prevent any further orders.
3. Record:
Keep track of all your communication with the business. Try to keep the communication in writing and make sure you save it all in case you need proof of your interactions moving forward.
4. Learn your rights:
The Business Practices and Consumer Protection Act states that consumers have no legal obligation to pay for unsolicited goods or services unless or until they let the supplier know in writing that they intend to accept the goods or services. We have also written a blog post about this topic that could be of use to you.
5. Report:
Report the activity to the Canadian Anti-Fraud Centre so that they are aware of the scam.
Scenario 3: You completed a survey or quiz for a “free gift” and now you’re being charged
You are surfing the web on a reputable site and this trustworthy business suddenly offers you a free gift in exchange for your time in completing a survey or quiz. You complete the survey and you enter your credit card information to receive the free gift. Now you’re seeing reoccurring charges on your credit card for products and services you never agreed to purchase.
What can you do?
1. Cancel:
Officially cancel the contract. While it probably doesn’t seem like you signed a contract, by providing your credit card number, you likely agreed to some terms and conditions without realizing it. You can use a cancellation form on this page as a template and send a copy directly to the business by email and registered mail in an attempt to prevent any further orders. This is an important first step because your credit card provider will sometimes request written proof that you made efforts to cancel the contract or resolve the issue with the business directly before they can help you.
2. Record:
Keep track of all your communication with the business. Try to keep the communication in writing and make sure you save it all in case you need proof of your interactions moving forward.
3. Contact your credit card provider:
Talk to your credit card provider to request a reversal of the charges. You may also want to request that they block any further withdrawals from the company. Include the following information:
- Business’s name
- Date the contract started
- Amount charged
- Description of goods/services
- Reason for cancellation
- Copy of your cancellation attempt (ex. cancellation form)
4. Contact the company who owns the website where the ad/survey popped up:
Online ads on legitimate websites are often purchased by a third party and the company who owns the website isn’t aware that a scam is being promoted on their website. It couldn’t hurt to let them know that you experienced a questionable transaction on their site.
5. Report:
Report the activity to the Canadian Anti-Fraud Centre so that they are aware of the scam.
This free trial seems legitimate, how do I know for sure?
While there are a lot of free trial traps out there, there are also legitimate businesses that offer trial products and services. To avoid a scam:
Research the company. Read online reviews. Don’t just read the comments below the social media post or ad, take the time to search for reviews in other places to see what people have to say. Also, look at the company’s website, an https:// at the beginning is a security feature – if the website doesn’t have it, don’t enter your information.
Find the terms and conditions. If you can’t find them, including how to cancel, or can’t understand them, just walk away. If you can find them, read them carefully.
Be selective when giving out any personal information. Giving out your email may not seem like a big deal but it can prove to be a hassle if it ends up in the wrong hands. We also suggest not giving out your credit card information for any free trial products.
Mark the date the trial ends. Make sure you know when and how you need to cancel the trial.
Be aware of the payment options. A wire transfer or an e-Transfer from your bank don’t allow you to stop a payment – once it’s gone, it’s gone. PayPal is the most secure method of online payment. Even then, do your due diligence if you think you still want to agree to the transaction.
Keep an eye on your credit card statements. If you paid by credit card, read your statements and make sure there aren’t any unwanted charges.
One last tip….
These days it’s difficult to know which businesses are legitimate and which aren’t, especially with the Internet opening us up to so many options that were never available before. Although it is easy to get bogged down in the details, following a simple rule about any consumer transaction will serve you well:
When something sounds too good to be true, it probably is.
While Consumer Protection BC doesn’t have any authority over scams, we are responsible for licensing and regulating certain industries in British Columbia. If you still haven’t gotten anywhere after taking all the above steps and you believe a legitimate company has engaged in some not-so-great business practices, we may be able to help. Depending on your concern, another organization may be the ones to speak to; other times, court or legal assistance may be the best solution. Either way, we will do our best to give you the most relevant information.
ADDITIONAL READING:
The top 10 scams of 2016
Phishing: don’t get reeled in
Cell phone scams: what do you need to look for?
Avoiding rental property scams
A scam warning from Canada Revenue Agency
great information thank you
Thank you Lynore! We’re happy you find it useful 🙂
Like you to look into a company called Overseas Immigration, Canada Work Permit, Immigration Lawyer Legal Services. I seen a post of theirs on FB and to someone from overseas it looks very legitimate. They promise foreigners a fast track into the country and yet, allegedly there is no such thing. They say Canadians will not work for the wages they are offering for positions when I asked them. They are out of Surrey and I suspect that they may be exploiting people.
Hi Rhonda, thank you for your question. While we think it is important to share information on scams and fraud for consumer awareness, Consumer Protection BC doesn’t have any authority in these areas. I can’t speak to the legitimacy of this business but if you know anyone who has been scammed by them I would suggest they contact the Canadian Anti-Fraud Centre so that they are aware of the scam. Here is a link to their incident reporting page: http://www.antifraudcentre-centreantifraude.ca/reportincident-signalerincident/index-eng.htm. I hope this information is helpful to you and thank you for sharing that information with us!
I tried contacting the company, but the email was sent back “undeliverable”. I have a copy of the cancellation form, which I am giving a copy to my MasterCard, to have the fee charged removed. How do I contact the company to let them know I have cancelled the “free” order?! The name of the company is “My Fancy Beauty”, from California via FaceBook! I got charged over $300 on something that was only supposed to cost under $50! There was no contract and I am sending the product back to them, along with the emails I sent stating I want my M/C credited for said amount! Please contact me regarding if this is a wise plan, or not. I will wait for your reply, but my M/C payment is due on May 5th.
Hi Sis – thank you for your comment. I agree. By no means are all free trials a scam. There are a lot of legitimate businesses that offer free trial products and services. We don’t suggest giving out credit card information for free trials, however, you are right. Some legitimate businesses do require that information, like Netflix. It’s just a matter of deciphering legitimate businesses from the scammers, which can be difficult to do. I hope you found the blog post helpful in doing so.
Hi Rebecca – thank you for your question. It is my understanding that you can also send the cancellation form to the business by registered mail, so I think your plan is appropriate. This step is so you can demonstrate to your credit card provider (if they ask) that you have made efforts to cancel and have tried to resolve the issue with the business directly. It seems like you may have proof of this effort with the emails, but your credit card provider will be more inclined to give you an accurate answer to that question. I hope this is helpful to you and please let me know if I’ve misunderstood your question.
Sorry but not all free trials are a scam. Some ask for your credit card, which after the trial period will then bill you.
Amazon Prime for example does this, as does Netflix. If you don’t like a service, cancel immediately rather than waiting.
Both of those services will email you a few days before to give you a chance to cancel, if you don’t do it – that’s on you, it’s not a scam.
The heart of all these scams is the Credit Card Companies. Without their complicity, the scam would not work. Allowing a “trial period contract” to begin on the day of order and processing the charge after this period has expired is the responsibility of the CC company. Honoring a “trial period contract” before the product is received is fraud. They are in collusion with the criminal merchant. CC Companies could stop this fraud anytime they choose, but they choose to support it for the revenue they gain. Consumer affairs needs to go after the CC companies and stop this practice, not support it and make excuses.
Hi, my name is Llama. I signed up for a free trial course online. Before doing so I checked the reviews and did a web search to see if it was a scan, everything came back sounding legit. I wanted to take a course online and up some of my skill sets during boring covid, I am a Mom with a toddler whose partner works so my schedule works around the kid and is tricky to find time to work/study.
My first red flag was that when I clicked on the info packet and toolkit that was supposed to come free with my free trial it charged me. Right away I informed the company. They told me that because it had already been sent to my account they could not refund me but gave me the next three courses free for life. I did not ask for this so I contacted my card company immediately because I was told they could block transactions and dispute wrongful charges.
My card company first informed me that they could not block certain transactions, companies or entities (my partner told me his could so I’m not sure why they can’t) next they told me they could not dispute the charges because I have my card info. (Every legitimate free trial I have ever gotten or taken in the past has required this so I never thought anything of it, and because my card company has disputed unplaced charges on my purchases before I did not think this time would be an issue, I was wrong.)
I went back to the company and asked them to remove my personal information and cancel my account, they replied back saying they had taken me off their mailing list and I would no longer receive e-mails from them. (This is not what I asked or even related)
My next step was to attempt to remove my account information myself. This proves not possible. So I contacted PayPal to see if they could block a charge or company as I could not remove the card info on the site but it did allow a payment method change. Unfortunately I can’t phone PayPal because they took their lines down from Covid and they aren’t responding by E-mail.
Now the last bit is that my account was automatically switched to premium and on top of the original fee that was supposed to be free I have now been charged double plus three separate card verification charges without changing anything and I haven’t even started my trial.
Please Advise.
Thank you,
-Llama
Hi Llama, thank you for reaching out to us here. I’m sorry to hear about your experience. I would suggest following the steps outlined on the Canadian Anti-Fraud Centre’s website.
This is for fraudulent sites though isn’t it? I’m pretty sure this one is a legitimate business.
Hi Llama, if that is the case, you may want to follow the contract cancellation steps outlined in this article.
Hi there, I recently did a free trial on testosterone pills, was charged $15, product came but I decided to cancel, called the merchant and said they will cancel any future orders and gave me a verification number. Does it sound legit that they have cancelled for me? Thanks
Forgot too add that another charge of $175was taken out which I didnt authorize. Also cancelled my credit card in case they tried again.
Hi Nick, thank you for contacting us here. There’s no way for us to know if the subscription was actually cancelled or not but it’s definitely a good idea to keep any correspondence (such as emails) you had with the company. Cancelling your credit card would prevent them from taking any further payments – great idea. Perhaps call/email the company in a few days to confirm your cancellation again. Sometimes talking/dealing with another person can be insightful.