The ugly truth about beauty
Samples can reel consumers in, but free trials and product deals are not always what they seem
Each month, I hear from people who fall for online ads offering a free trial of cosmetic products. They are embarrassed and ask me to spread the word — anonymously, of course.
“An old fool,” as she calls herself, saw a pop-up ad for a free trial of anti-aging creams, with a small cost for shipment. But she was charged $267 (U.S.) for both products on her next credit card statement. The company said she had been billed for the products because she had not paid attention to the terms and conditions of the deal, printed in faint blue at the bottom of the page.
“By ordering, you are agreeing to the terms of the 14-day trial. Upon completion of the trial, you agree that your card will be charged on the 14th day and every 30 days thereafter, unless you cancel,” it read.
While the company reversed two more charges posted for October, it said the original charges from September would still stand. Visa, MasterCard and American Express offer a zero-liability-for-fraud guarantee. But when you ask credit card issuers for a refund, they often blame you for agreeing to an online deal without reading the terms and conditions.
Another reader, who calls herself “a gullible 78year-old woman,” noticed a free trial offer for skin products that appeared in a pop-up ad when she visited the website of Costco Pharmacy.
“I was asked four questions about Costco, such as, ‘Are you a Costco customer?’ and was told I would be ‘rushed’ these products if I just paid for shipping. Here is where I got stupid. I gave my Visa card number, received the products and saw that $14.89 was charged. But when I went to pay the $14.89, I saw that my credit card had been charged a total of $369.93 (Canadian).”
When you ask credit card issuers for a refund, they often blame you for agreeing to an online deal without reading the terms
The skin care company offered a $150 partial refund once she returned the products. But her credit card company refused to help, saying it was her fault for not reading the 11 pages of terms and conditions.
Free trial offers are especially confusing when they pop up at a trusted retailer’s website. Customers may not realize they are dealing with a separate company.
Costco has a page of fraud-prevention messages at its website, which customers might find if they make an effort. But why not use pop-ups to fight back against pop-ups?
The company points out that some Facebook accounts use the Costco name and logo, claiming to offer merchandise at below-market prices or giving away samples.
“They are SCAMS. Costco does not ask for money to ship you samples. We also do not ask you to provide your personal information online, except through our official website, www.costco.ca.”
Note that Costco talks about “samples.” I used the same word in past columns, but it’s not always the right term.
“Beware of the difference between a free trial and a free sample,” says a reader. “I ordered what I thought was a free sample of wrinkle cream.
“I clicked on the ‘accept’ window without reading the contractual agreement. When I was billed for $277.93 (Canadian) on my credit card statement, I didn’t realize that the fees were for the products I had received.
“The skin care company agreed to cancel future shipments and offer a 50 per cent refund. But my credit card issuer said it couldn’t do anything because the contractual agreement was for a free trial with a 14day deadline.”
Remember: The clock starts ticking on the day you put in the order. You do not have 14 days after receiv- ing the merchandise to try it out.
Another reader ordered a 14-day free trial coupon last May 13. The full amount of $151.95 (U.S.) was charged to her credit card on May 27.
She was charged again for $151.95 on June 28, but she had not received anything yet. The item arrived only on June 30.
How can you avoid the free-trial trap?
Ignore the impulse to sign up for something in a pop-up or banner ad, says the Competition Bureau in Ottawa.
Don’t be enticed through social media to pay a small fee for access to a trial offer.
Once you give your credit or debit card information, you will be enrolled in a monthly subscription and trapped into making costly payments.
Check out the company behind the offer. You can buy something online from one company and later find the offer or pop-up is from someone else.
See what other people are saying about the company’s free trials and its service. Complaints can tip you off to catches that might come with the trial.
Read the terms and conditions, which may be hidden. If you can’t find them or can’t understand what you’re agreeing to, don’t sign up.
Mark your calendar. Your free trial probably has a time limit. If it passes and you don’t tell the company to cancel, you may be on the hook for more products.
Finally, treat “free” as just another four-letter word. Replace it in your mind with the hashtag #2G2BT (Too Good to Be True).
When it comes to free trials and subscription traps, promises of “free” can actually end up costing you big time, the Competition Bureau says. Ellen Roseman’s On Your Side column appears each week in Smart Money.