Commissioner's Blog: Unknown subscriptions costing you? Check the fine print!

This announcement is for: 
Consumer

Have you ever checked your bank account and noticed payment after payment taken out for a subscription you thought you cancelled, or didn’t even know you had?

 

Turns out some subscriptions might not be as easy to cancel as you originally thought, and you might be caught in a subscription trap.

 

Subscription trapping is a tactic known as a “dark pattern”, where you are manipulated or tricked into spending more than planned – just like with subscriptions that are easy to sign up to but hard to get out of.

 

You may only have to provide basic details to subscribe for a product or service, but to cancel you may need to go through multiple steps online or be required to phone the company and push through their attempts to talk you out of it.

 

In the past 12 months, there have been more than 330 complaints to Consumer Protection about how hard it is to cancel a subscription. The majority of the complaints relate to fitness service providers and streaming services. However, there are also a number of complaints against online dating platforms, food delivery services and wine subscriptions.

 

In some cases, consumers may have rights under Australian Consumer Law (ACL), including for misleading conduct or unfair contract terms. There are also specific rules that apply to fitness service providers, such as allowing members to cancel by email or letter rather than having to cancel in person. While the ACL might not cover you for every situation, there are some simple steps you can take to protect yourself. 

 

To avoid getting caught in a subscription trap, make sure you’ve read and understand the terms and conditions before signing up to see whether any ongoing fees are involved.

 

If you sign up for a free trial set yourself a reminder to cancel the subscription before the first billing date.

 

When reviewing existing memberships and subscription services, look through your bank statements to see what you’re paying for, then think about which services you use and check whether there’s a better deal, cheaper plan, or lower-cost alternative.

 

These small, but regular, costs can soon add up and contribute to cost of living pressures, so it can be worthwhile taking the time to see which services are worth keeping and which ones aren’t. Cancel any subscriptions or memberships you’re not using or getting value from. For streaming subscriptions in particular, consider whether it is worth cycling through different subscriptions for a few months at a time.

 

If you’re struggling to cancel a subscription, or believe you’ve been misled into paying for one, contact Consumer Protection 1300 30 40 54 or email consumer@demirs.wa.gov.au

Consumer Protection
Media release
18 Sep 2024

Last modified: