Consumers are reimbursed for ‘free’ samples after ACM intervention
Consumers that filed complaints because they had to pay for a ‘free’ sample, will get their money back. RCM Cosmetics (RCMC) promised this to the Netherlands Authority for Consumers and Markets (ACM) after ACM had launched an investigation. Consumers ordered free samples of gel nail polish or facial cream. If they did not return these items within 14 days, they had to pay for them. RCMC then sent at least three more follow-up shipments. Consumers that ordered the ‘free’ sample had thus spent approximately EUR 150. All consumers that filed complaints with RCMC, ACM or a consumers’ association about this practice will be reimbursed or are no longer required to pay their unpaid bills. Anita Vegter, Member of the Board of ACM, explains: “ACM has various instruments at its disposal to solve consumer problems. In this case, we agree to RCMC’s commitment because it will take away the harm that consumers have suffered. That is a wonderful result.”
Dealing with unsolicited follow-up shipments in a broader context
RCMC’s commitment fits in ACM’s approach to the problem of unsolicited follow-up shipments (also called ‘subscription traps’). In its approach, ACM puts consumers first. RCMC has suspended its sales activities. After ACM’s intervention, RCMC will actively contact consumers, and will either pay back their money or waive their unpaid bills. RCMC will close all outstanding cases that the debt collection agency was working on. With these actions, RCMC takes away the harm that the affected consumers have suffered.
In the summer of 2015, ACM contacted and warned various companies because it had received a lot of complaints about them through consumer information portal ConsuWijzer. Under the guise of ‘free’ samples, these companies offered subscriptions for products such as condoms, facial creams, teeth whitening products, weight-loss supplements and razor blades. Following this intervention, some of these companies immediately stopped their sales activities. Other companies adjusted their practices. In addition, ACM launched a consumer awareness campaign, calling on consumers not to pay so easily for unsolicited follow-up shipments. Consumers are strongly advised to check whether or not they have agreed to follow-up shipments.
Dealing with consumer problems
In the second half of 2015, the number of reports about unsolicited follow-up shipments dropped considerably. ACM will obviously continue to keep a close watch on the sector over the next few months, for example based on the number of reports filed with ConsuWijzer.
When selecting the right approach to specific problems, ACM puts consumers first. This means that, in some cases, ACM offers companies the opportunity to adjust their practices quickly so that consumers will no longer be harmed. In other cases, ACM imposes fines.