Joint advice from Visa, the FTC and the BBB says to verify an offer before payment. Read all terms and inspect pre-checked boxes for hidden charges. A trial sold with a negative-option feature treats failure to cancel as permission to charge, according to Visa. Negative-option means silence counts as agreement to pay.
Table of Contents
- What makes a free trial a negative-option trap?
- What must you read before you pay?
- Which warning signs mean walk away?
- What should you do after an unwanted charge?
What makes a free trial a negative-option trap?
The CFPB says calling a product free is an unlawful negative-option practice when signup starts a short trial that auto-enrolls you in a subscription. That covers cases where key terms sit in fine print or low-contrast text, as explained in the CFPB circular.
The risk is common. About 29% of U.S. online consumers had fallen victim to deceptive marketing requiring cancel or opt-out to stop recurring charges, per a Visa survey.
What must you read before you pay?
Read the full terms, not just the order button. Leaving pre-checked boxes checked can bind you to unwanted paid terms, in the joint tips from Visa, the FTC and the BBB.
The Better Business Bureau examined trial pages with buried terms. Many allowed only about 14 days to return the product or face $100 or more plus monthly shipments, as described in the BBB investigation. Look for trial length, return deadline, full price, and shipment schedule before you enter card details.
Which warning signs mean walk away?
The Better Business Bureau found scammers routinely use fake celebrity endorsements without permission. They also make sellers hard to contact for cancellation, shipment stops, or refunds.
Walk away when contact help or billing terms stay vague. Compare the same product on the seller's main site before you pay.
- Celebrity photo endorses the trial with no clear permission or source.
- No simple contact method for cancel, shipment-stop, or refund requests.
- Trial length, return steps, or monthly shipment dates stay hidden.
What should you do after an unwanted charge?
Call the card company immediately about an unwanted trial charge. The CFPB also advises sending a written billing-error notice within 60 calendar days after that statement, as explained in the CFPB dispute guide.
The issuer must acknowledge receipt within 30 days, according to the CFPB. File a separate report at ReportFraud.ftc.gov for law-enforcement tracking, as directed in the FTC reporting portal. Keep written cancellation proof because a phone call alone does not preserve all billing-dispute rights.
