NV Atty General Reports Surge in “Free Trial Offer” Complaints

In March 2008, the office of the Nevada Attorney General, Catherine Cortez Masto, reported a sharp increase in the number of consumer complaints about “free trial offers” and “special product offers” that resulted in unwanted debits from their bank accounts. The complaints are handled by the AG’s Bureau of Consumer Protection and the Nevada Consumer Affairs Division.

Beware Special Offers
A company advertises a “special offer” or a “free trial” of its product or service, such as a fitness club membership, a weight loss product, a credit card protection plan, and more. The offer may come to the consumer, by mail, telephone, or e-mail.

To participate and receive the trial offer, the consumer agrees to make a small purchase or pay just the shipping cost for the product. The consumer must supply his or her bank account information, and the company uses this information to do a “demand draft” on the account.

Multiple Withdrawals
However, many people are surprised to find that what they thought was a one-time purchase turns out to be monthly withdrawals by the company. The consumers either didn’t agree to this, or they signed up for such a payment agreement without having read the fine print. This is especially true of online purchases, where it’s all too easy to click on the “I accept” button without reading all the boring legalese about “terms and conditions” of that special/trial offer.

Sometimes the agreement allows for a cancellation by the customer, but it often has to be done within a rather short time, such as 14 days after the agreement was made (which is too short to catch, since the bank demand drafts don’t occur that soon).

Difficult to Stop
Many consumers have told the AG that it’s been impossible to get the company to stop taking the payments from their accounts, and that it’s impossible to reach a human being at the company to complain to. Others have noted that even when they send written notice that they are canceling the offer, the demand drafts keep being performed. Legal help is often necessary.

The Nevada AG’s office advises consumers to not provide their financial information to Bureau of Consumer Protection and the Nevada Consumer Affairs Division should review it with a high amount of skepticism. What looks like a one-time purchase for a small amount can turn out to be a recurring charge.

Get Help
If you’re not able to get a refund or cancellation, you do have legal recourse. You can report your complaint to the Nevada consumer protection offices, and you can discuss your case with Matthew Sharp for advice and assistance. 

419 Flint Street
Reno, NV 89501
Matt@MattSharpLaw.com

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Tel: (775) 324-1500
Fax: (775) 323-6249