‘Free’ samples often end up costing consumers hundreds of euros
Did you agree to receiving a free sample of, for example, teeth whitening products, superfoods, weight-loss supplements or razor blades, but are you now involuntarily stuck with follow-up shipments that cost you hundreds of euros? Today, the Netherlands Authority for Consumers and Markets (ACM) launched its consumer awareness campaign ‘No order, no pay’ (in Dutch: ‘Niet besteld? Geef geen geld!’) via its consumer information portal ConsuWijzer, following reports from consumers about unsolicited follow-up shipments, a practice that is often referred to as ‘subscription traps.’ Consumers are given advice about how to find out whether or not they have actually agreed to paid follow-up shipments, and whether or not they need to pay for them. In addition, ACM will intensify its enforcement efforts. Anita Vegter, Member of the Board of ACM, explains: “If consumers stop paying for unsolicited follow-up shipments, companies will automatically stop employing such unfair commercial practices. It will no longer be profitable for them.”
Each month, ConsuWijzer receives approximately 200 indications concerning subscription traps.
What are subscription traps?
Companies try to approach consumers through advertisements on social media, websites or in the streets in order to have them get to know their products or services for free. What often happens is that consumers automatically sign up for follow-up shipments as part of the free sample, even though this was not mentioned in the advertisement. If consumers then refuse to pay the bills for the follow-up shipments, or if they cancel the direct debit payments, they are often sent reminders. Or a collection agency is even hired to collect payment. Many consumers are intimidated or assume that they had not paid any attention when agreeing to the free sample, and then decide to pay under pressure. However, according to the law, they do not need to pay if they had not explicitly agreed to those paid follow-up shipments.
Consumer awareness campaign
The aim of the consumer awareness campaign ‘No order, no pay’ is to let consumers that have been affected know that they are not alone, and that they are legally protected against such practices. Consumers that are faced with subscription traps can use one of ConsuWijzer’s online tools called ‘Terecht-checker’ to find out whether they are dealing with a valid contract, and thus whether or not they need to pay. For example, if the subscription to the follow-up shipments is only mentioned in the general terms and conditions, and not in the offer for the free sample, then the contract is not valid, and consumers do not need to pay. ConsuWijzer also has a sample letter that consumers can use to send to debt collection agencies and providers to inform them that they will not pay for the shipments, and why not. In several online videos, Jeanine Janssen (Ombudsman for MAX, a television station targeting seniors), Eef van Opdorp (financial expert) and Manon Vanderkaa (director of senior citizens association Unie KBO) explain to consumers what their legal rights are.
Intensified enforcement efforts
In the next few months, ACM will be keeping a close watch on compliance with the rules, and will, if necessary, force businesses to comply. Consumers are invited to submit any indications they may have about unsolicited follow-up shipments to ConsuWijzer.