Watch Out for Free Trial Offers
Posted August 1, 2024
It’s a new product—and you can try it for free!
Sounds amazing, right? Unfortunately, a free trial can be a gateway to devastating loss. Here’s what you need to know about free trials and how to keep your finances safe.
What’s the Problem with Free Trials?
Free trials typically involve a business offering a product or service at no cost for a limited time. The catch is that consumers unknowingly agree to pay for ongoing subscriptions or other products by signing up for the trial. There’s also nothing criminal about free trial scams, just manipulative and deceitful marketing.
- Enticing offers. Customers are lured in with attractive offers, such as free trials for popular products like skincare items, dietary supplements, or streaming services.
- Hidden terms and conditions. Consumers must provide their credit card information when signing up for a free trial. The terms and conditions, which outline the true cost and the auto-renewal policy, are sometimes hidden in fine print or on another page.
- Auto-renewal traps. After the trial period ends, consumers are automatically charged for a subscription or new products. These charges can add up to a lot, and they’re usually set up to recur.
- Unauthorized charges. In some cases, people might continue to be charged even after they attempt to cancel. These charges can be for various fees or additional products that the consumer did not knowingly agree to pay.
How to Use Free Trials Safely
- Before signing up for any free trial, research the company offering the product or service.
- Pay attention to details about the duration of the free trial, the subscription cost after the trial ends, and the cancellation policy.
- When signing up for any online service, use strong, unique passwords to protect your accounts.
- Verify the security of every website you visit by looking for “https” at the beginning of the URL and a padlock icon in the address bar.
- If you sign up for a free trial, set a reminder for a few days before the trial ends, so you can cancel the subscription before you’re charged.
- Regularly review your checking account and credit card statements for unauthorized charges. If you notice any suspicious activity, and you’ve already canceled your trial or unsubscribed, report it to your credit card company immediately to dispute the charges.
Free trials can be a great way to try out a new product before committing to it, but you have to be careful. Read the fine print and stay safe!
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Categories: FinancialAdvice
