‘Too good to be true’ subscriptions warning
Posted on: 27 November 2017
Trading Standards is urging consumers to read the small print before agreeing ‘too good to be true’ subscriptions which can lock people into an unwanted contract and a cycle of debt.
The Chartered Trading Standards Institute (CTSI) estimates that two million people across the UK have had problems cancelling recurring payments for services they unaware they had agreed to.
These range from gym memberships and health and beauty products to streaming services and periodic subscriptions, many with reduced-rate or free initial trial periods.
Now as part of National Consumer Week (Monday November 27 to Sunday December 3) Devon, Somerset and Torbay Trading Standards Service is appealing to residents to think before signing a continuous payment authority.
To help consumers and businesses, the CTSI and Consumer Protection Partnership (CPP) have released two video animation guides for consumers, businesses and financial institutions on subscription issues.
The first animation is aimed at businesses who offer subscriptions to their customers – all businesses must follow a strict set of laws designed to protect consumers from unfair practices. The second animation gives practical advice for consumers to make them think before they sign and not be tempted by free trial offers.
The videos are produced alongside Business Companion, a free government-backed business advice website. Business Companion offers important up-to-date consumer law information including subscription periods, renewal schedules and total monthly costs, as well as continuous payment authorities.
Councillor Stuart Barker, Devon County Council’s Cabinet Member for Trading Standards said: “Through our work on the National Scams Project we help people to stop making payments that they that have unwittingly signed up to via continuous payment authorities. I would urge everyone to make sure they have a clear understanding about how to cancel a subscription or service before signing any agreement.
“These can cause serious debt problems for consumers when left unmonitored, and we want businesses to ensure their terms and conditions are clear and transparent.”
Paul Thomas, Head of Devon, Somerset and Torbay Trading Standards Service, said: “Consumers often sign up for subscriptions and can face problems cancelling future payments.
“Some are subscription traps and deliberately mislead, others may not be misleading but consumers must take the time to read the terms and conditions fully. Sometimes the devil is in the detail.”
You can search for a list of tradespeople, vetted by Trading Standards, on the Buy With Confidence website.
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