BBB Tips: Don't forget about canceling free trials
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(BBB) -- A new year brings a fresh start! Many people look for subscriptions that might help them kickstart their New Year’s resolutions, such as a gym membership, meal delivery or budgeting service.
You might also be cashing in on a holiday gift: Roughly 70% of millennials and Gen Z said they’d like to receive a subscription for the holidays in 2025, and the holiday season drives nearly one-third of streaming signups. Services like streaming, video games, pet supplies or clothing are all popular options.
But don’t go handing out your information to just anyone. Subscriptions can be tricky, as each company has unique policies around free trials, subscription length, payment method and cancellation terms.
BBB's advice? Read the fine print when you sign up. Don't assume one company’s subscription service will be like another’s, and make sure you know the terms, even if you’re just signing up for a trial.
What should I know about signing up for subscriptions?
Know your budget. One service may seem inexpensive, but multiple monthly subscriptions can add up quickly. Make sure you’re measuring the cost of any new services against your budget, and review your subscriptions regularly.
Keep signup discounts in mind. Brands may be offering discounts around this time of year – for example, a lower cost for your first three months. Read these carefully so you’re not surprised by a price increase down the road.
Do plenty of research. Before you sign up, find the company on social media and review their accounts. Check BBB.org to see BBB Accreditation status, the company’s rating and consumer reviews. Do an online search of the company, including the words “scam” or “complaint,” to reveal any red flags.
Investigate free trials. Find out how long the trial period lasts and how and when to cancel if you decide not to subscribe. If this information is confusing or unavailable, take your business elsewhere. If you do use a free trial, make sure to mark its expiration date on your calendar to avoid being charged automatically!
Look for pre-checked boxes. During online signup, look for boxes that have already been checked. The FTC warns that these “may give the company the green light to continue the offer past the free trial or sign you up for more products.”
Protect your personal information. Before you hand over your information and credit card number, review the site’s privacy policy. Make sure the payment website is secure (it should start with “https://” and have a lock icon by the URL).
Understand auto-renewal. With auto-renewal, the company charges your credit or debit card on the expiration date to renew your subscription. Make sure you are clear on whether or not your subscription will auto-renew. Remember that companies must send you a renewal notice ahead of time.
Know how to stop a subscription. To stop automatic payments, you can contact the company to revoke payment authorization, call and write your bank to revoke payment authorization, or give your bank a “stop payment order.” Contacting the company is usually sufficient, but monitor your bank statements closely. You may need to take further action if you still see unwanted charges.
Review your financial statements regularly. If you see charges you disagree with, contact the company directly to sort out the situation, and if necessary, call your credit card company to dispute the charge.
Watch out for scams. Scammers may offer you free trials or deals, hoping you’ll hand over your credit card number. Don’t believe deals that seem outrageously good. In addition, if you receive a “renewal notice” that asks you for your credit card information, it’s probably a scam. Renewal notices are reminders from a company that already has your payment information, and they generally will not ask for it a second time. Contact the company directly to verify suspicious messages.
