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Free Trial Offers: Are They Good Deals?

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Free trial offers are used by many companies to sell everything from books to CDs, magazines to Internet access. Trial offers can be a great way to try new products or services without making a commitment.

You should be aware, however, that by accepting a free trial offer, you might be agreeing to buy additional products and services if you do not cancel within a specified time.

Before you accept a free trial offer, be sure you know what your obligations will be. For example, you might have to contact the company to cancel during the trial period to avoid receiving goods or services or to avoid paying for what you have already received. By not canceling, you might be agreeing to let the company enroll you in a membership, subscription or service contract and to charge the fees to your credit card.

Pay close attention to the material terms advertisers use. According to the law, companies must clearly and prominently disclose the material terms of their trial offers before you give your consent. Material terms might include:

• how much time you have to cancel before you incur charges;

• the fact that, by accepting the trial offer, you are agreeing to be enrolled in a membership, subscription or service contract, or agreeing to pay for additional products and services if you do not cancel within the trial period;

• the cost or range of costs of goods or services you will receive if you do not cancel;

• how to cancel during the trial period;

• whether you will be charged a nonrefundable membership fee if you do not cancel;

• and whether fees will be charged automatically to the credit card you used to buy other goods or services.

Trial offers are promoted through newspaper and magazine ads, TV and radio commercials, direct mail, the phone and Internet. In print ad offers, the material terms might appear in fine print as a footnote at the bottom of a page, or on the back of the offer.

To protect yourself, read the entire offer carefully before you decide whether it is a good deal. When offers are made orally – whether by radio, TV or on the phone – listen carefully to the message. If you do not understand the details, ask the caller to repeat the terms and conditions as many times as it takes until you understand. Or ask them to send you the terms and conditions in writing.

The Better Business Bureau and the Federal Trade Commission suggest you ask the following questions:

• Is the free trial offer related to a membership, subscription or extended- service contract?

• Do I have to contact the company to avoid receiving more merchandise or services?

• Whom do I contact to cancel?

• Will I receive other products with the free item? If so, will I have to pay for them or send them back if I do not want them? How long do I have to decide before incurring a charge?

• Is there a membership fee? If so, is it refundable?

• Will you automatically bill my credit card for anything?

• Who is offering the trial? What is the name and address of the company?

If you have a problem with a trial offer, try to resolve it with the seller first. If you are dissatisfied with the response, contact the Better Business Bureau (www.bbb.org) or the Federal Trade Commission (www.ftc.gov).


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