BBB: FTC cracks down subscription service scams

WICHITA FALLS, Texas (KAUZ) - The Better Business Bureau said the Federal Trade Commission is cracking down on businesses that offer subscriptions but make it difficult or nearly impossible to cancel those services.

BBB officials said the following are some common tactics:

• Companies will hide important payment information or even the fact that you will be charged at all
• Some are charging for subscriptions before the trial period has ended
• Others require the consumer call a number leading to lengthy phone call and indefinitely being left on hold

According to the BBB, new FTC statement requires businesses to:

• Disclose clearly all material terms of the product or service, including how much it costs, deadlines by which the consumer must act to stop further charges, the amount and frequency of such charges, and how to cancel
• Obtain the consumer’s express informed consent before charging them for a product or services - this includes obtaining the consumer’s acceptance of the negative option feature separately from other portions of the entire transaction
• Provide easy and simple cancellation to the consumer - marketers should provide cancellation mechanisms that are at least as easy to use as the method the consumer used to buy the product or service in the first place

If you are finding it impossible to cancel a subscription, you can file a complaint with BBB online by clicking here or with the FTC by clicking here.

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