January 25, 2008 Spanish
Iowa Attorney General Tom Miller is warning consumers to be wary of free gifts and free trial offers. Instead of getting something for free, Miller says these gifts always come with plenty of expensive strings attached.
In many cases, Miller says consumers get charged for products and services without even knowing it.
The charge for things like buying cub memberships and credit card protection plans - appears automatically when the free trial period ends.
"Consumers often are surprised when and if they discover the unexpected bill," Miller said. "The problem seems to stem from two things: First, consumers may not realize a seller already has the key information to bill their credit card or checking account. Second, some sellers may use questionable tactics to try to shift the burden onto the consumer to cancel."
If consumers don't cancel within the "free trial offer period" - usually 30 days but sometimes less they are charged the monthly or annual membership fee, possibly as much as $100 or more. Consumers may be charged repeatedly every month or every year if they don't cancel.
Miller says these bogus "free trial offers" can come in several ways:
• On the phone. You may order a product or a ticket, or make a hotel or car reservation and then the telemarketer may ask you to consider a "free trial offer" membership.
• In mailings. For example, a bank or credit card statement may include a check made payable to you for a small amount (say, $10 or $15) with fine print on the back of the check that signs you up for some kind of buyers club or program -- and a monthly or annual charge if you cash the check!
"Remember, sellers may already have access to charge your credit card or checking account -- and they will bill you after the free trial period without further approval from you," Miller said.
"They count on you forgetting, not noticing the billings, or not noticing if they send you a mail notice that you discard as "junk mail." And some unscrupulous sellers may start billing you even if you decline the free trial offer!"
