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BBB study shows how free trial offers mislead consumers with fake endorsements, surprise charges

 


(December 12, 2018) Buffalo, NY – The internet is rife with ads and links leading to pictures of celebrities and “miracle” products that promise easy weight loss, whiter teeth, or disappearing wrinkles. You may be enticed to try these products through a “risk-free” trial: Just enter your name, address and credit card number, and the product will be on its way for only a nominal shipping and handling charge. An in-depth investigative study by Better Business Bureau (BBB), however, finds that many of these free trial offers are not free. BBB receives complaints from free trial offer victims nearly every day and warns consumers to use extreme caution before agreeing to the offer and entering their credit card number.

The investigative study “Subscription Traps and Deceptive Free Trials Scam Millions with Misleading Ads and Fake Celebrity Endorsements” -- looks at how these free trial offers try to trick consumers into so-called “subscription traps” that hook them for expensive shipments of products they did not explicitly agree to buy. It digs into the scope of the problem, who is behind it, and the need for law enforcement and consumer education to address the issue. Read the complete report here.

Free trial offers can be a legitimate way for credible companies to introduce new products, provided the company is transparent about the offer and its terms. However, fraudsters have turned such offers into a global multi-billion-dollar industry, one that grows every year.

Many free trial offers come with fine print, buried on the order page or by a link that gives consumers only a short time period to receive, evaluate, and return the product to avoid charges of (oftentimes) $100 or more. In addition, the same hidden information may state that by accepting the offer, you’ve signed up for monthly shipments of the products and fees will be charged to your credit card. Many people find it difficult to contact the seller to stop recurring charges, halt shipments, and get refunds. Such obscure terms in these offers often violate the Federal Trade Commission (FTC) and BBB guidelines on advertising, as do the satisfaction guarantees that are ubiquitous in free trial offers.

The study found that many of the celebrity endorsements in these ads are not real. Fraudsters use dozens of celebrity names without their knowledge or permission, ranging from Oprah Winfrey and Ellen DeGeneres to Mike Rowe, Tim Allen, and Sally Field. Sometimes the fine print even admits these endorsements are not real.

Available FTC data shows that complaints about “free trials” more than doubled from 2015 to 2017, and BBB has received nearly 37,000 complaints and Scam Tracker reports over the last three years, though not all of these complaints involve monetary loss. In addition, victims in 14 resolved FTC cases collectively lost $1.3 billion, and consumers making reports to BBB lost an average of $186.

An examination of the BBB complaints and reports found that victims span all income and education levels, while a review of complaints to the Internet Crime Complaint Center (IC3) from 2015 to 2017 shows a fairly even spread of age ranges. However, the BBB reports show that 72 percent of victims were female, likely because many free trial offers involve skin care products geared toward women.

What to do if you believe you have been a victim of a free trial offer fraud:

• Complain to the company directly.

• If that is not successful call the customer service number on the back of your credit card to complain to the bank.

• Complain to bbb.org

• Report the fraud to bbb.org/scamtracker

• Report it to the Federal Trade Commission (FTC) or call 877-FTC-Help

• Report it to the Internet Crime Complaint Center, or IC3

• Report suspicious, confusing or misleading ads to BBB Ad Truth.

About BBB

Visit bbb.org for more information.

 

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