Free Trial Offers

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

David Polino, President of the BBB suggests, "Before you accept a free trail offer, be sure you know what your obligations will be. For example, you may 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 may 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 trail offers before you give your consent. Material terms may include:

• how much time you have to cancel before you incur charges;
• the fact that by accepting the trail offer, you are actually 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 during the trial period;
• how to cancel during the trial period;
• whether you will be charged a non-refundable membership fee if you do not cancel within the trial period; and,
• whether fees will be charged automatically to the credit card you used to buy other goods or services.

This report is general in nature and not intended as a reliability report on any company, service or product.