Too Good To Be True?
听When Karen Young from Cardiff saw an offer for free face cream when browsing on the internet she thought it was too good to miss, especially as she only needed to pay the postage. She said: 鈥淭his advert popped up on the right hand side so I just clicked on it. It was for Revitaderm miracle wonder cream and it was a trial pack for 拢2.95 so I ordered it.鈥
All she needed to do was fill in a few details - including her credit card number. She thought it was low risk and that not receiving products would be the worst case scenario. But it wasn't just one payment. In less than two months a company called Revitaderm took eight payments from Karen鈥檚 card totalling 拢417. The company, also known as Perfect Radiance, has been in the headlines recently with the Guardian claiming they had around 1,000 complaints about them. The Advertising Standards Authority have upheld complaints about their marketing techniques.
But after dozens of phone calls Karen did manage to get her money back.
In Newport pensioner Georgina Gibbons - who signed with a different companies Pure Life and HCGUltraLean- hasn't been so lucky. Georgina said: 鈥淚 was on Facebook and I sawn this advert stating that you could lose weight on a trial, 拢5.95 I thought right it's worth a try. I looked further and it had no obligations you know so I thought I'll try it, it's worth a try.鈥
Like Karen, Georgina handover over her bank details and while she received one bottle of capsules and one bottle of drops, the company emptied her bank account. She said: 鈥淭hey took 拢143.76 out and that was everything that we had, as we're on a pension credit and there was only like 拢16 left in the bank. That was supposed to last us from Saturday to Saturday, it made me really, really ill. Taking money like that they don't care who you are do they?鈥
These trials turn out to be a subscription service and when you give them your bank details you're听 actually signing up to something that's called continuous payment authority. It's a common, and legitimate, form of regular payments set up between you and a business. But the power all lies with the company so it's like handing over your purse to a complete stranger and trusting them with the contents. These are often confused with direct debits, but do not offer the same guarantee if the amount or date of the payment changes.
The power all lies with the company, in most cases, regular payments can be cancelled by telling the company taking the payments. However, you do have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments. Your bank or card issuer must then stop them 鈥 it has no right to insist that you agree this first with the company taking the payments.
And it鈥檚 not just the issue of the continuous payment authority, both Karen and Georgina gave their details over to the companies because the adverts appeared on websites they trusted 鈥 they didn鈥檛 realise the way internet advertising works. Internet security expert Richard Cox explains: 鈥淲ell on Facebook the adverts are quite frequently targeted as they are on other social media, by what you鈥檙e actually viewed in the past and what you've actually indicated that you liked. It forms a profile of you so that advert could be said to be targeted at you.听This is the same with some search engines like Google.鈥
And when you click on these adverts you can often be taken to a specific section that the company wants you to see. Richard said: 鈥 You're taken to the advertisers website but not necessarily to the same page on that website that you would be taken to if you just typed the site' name into your computer. This is a problem, a big problem, because what you see won't necessarily be the same as what an investigator would see if they go back to that site after you think you're been scammed."
According to Richard the use of words like 鈥渇ree trials鈥 all make up an aggressive style of marketing.
He said: 鈥淭hey are setting up an environment where there is a mistake they want you to make and most people will make it.鈥
And when it comes to tracking down these companies, it's not easy. We've been investigating the website Georgina used.听 The website only lists a PO Box in Scotland. But with a bit of digging we've found that banking is based in Malta, the website owner is in Germany, and if the customer service line in the Philippines is to be believed the actual company is based in Utah, America.
For Georgina it's been a costly lesson. The company are refusing to answer her emails and her bank has told her there is no chance of getting the money back via chargeback. We鈥檝e tried to contact all the companies involved but they have not responded to our letters and emails, and it seems Karen and Georgina are not alone in falling for these offers. These types of trials are a multi-billion dollar industry.
Just last week the authorities in America ordered one man to repay six hundred and fifty MILLION dollars to customers who'd lost out in cases like these.
Staying Safe Online
How can you avoid the costs that might be hiding in free trials?
*Research the company online. Before you sign up/purchase investigate the company, see what others are saying about these trials or their service.
*Don鈥檛 necessarily believe what is on the advert 鈥 Images, quotes, customer reviews and even locations might not be true.
*Find the terms and conditions for the offer. That includes offers online, on TV, in the newspaper, or on the radio. They might be hidden on the page and if you can't find them or can't understand exactly what you're agreeing to, don't sign up.
*Look for who's behind the offer. Just because you're buying something online from one company doesn't mean the offer or pop-up isn't from someone else.
*Watch out for pre-checked boxes. If you sign up for a free trial online, look for already-checked tick boxes. That box might give the company the green light to continue the offer past the free trial or sign you up for more products 鈥 only this time you have to pay.听听听听听听
*Mark your calendar. 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.
*Look for info 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?
*Look for address and phone numbers 鈥 Where would you go if something went wrong?
*Read your credit and debit card statements. That way you'll know right away if you're being charged for something you didn't order.
*Think before entering your credit/debit card 鈥 If someone is offering something for 鈥渇ree鈥 or a 鈥渢rial鈥 and you need to enter you details for postage and packaging think twice. They might be signing you up to something more long-term.
*Cancel with your bank 鈥 You have the right to cancel a recurring payment with your bank. They have no right to insist you cancel with the company first.
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