Consumer laws and subscription services

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t0ny

376 posts

Ultimate Geek

Lifetime subscriber

#223534 4-Oct-2017 19:26

Just wondering if fair trading act or consumer laws cover something in respect to subscription services. I have a situation where i had a subscription to a service for a year from an NZ based company. Once the subscription expired, they automatically put me on a pay monthly sub and sent me the bill end of the month. I didnt even know the subscription had expired or that i would be switched to a pay monthly sub. I had no intention of renewing the service. Also, they expect you to give them 30 days notice via email if you want to cancel the sub.

mattwnz

19389 posts

Uber Geek

#1877445 4-Oct-2017 19:55

It will likely be in the terms and conditions, which people need to read. These days it seems to be standard practice for subscriptions to auto renew, and services like ISPS even require 30 days minimum notice.

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Linux

10300 posts

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Trusted

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#1877450 4-Oct-2017 20:05

@t0ny 30 days notice would be covered in the terms and conditions, Why did you not just call and ask for the contract end date and set a cal reminder?

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Jase2985

12348 posts

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#1877458 4-Oct-2017 20:22

let me guess, lightbox?

t0ny

376 posts

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Lifetime subscriber

#1877464 4-Oct-2017 20:35

The flyer just said 12 month sub when I signed up so I assumed that it would just stop working. If they would have just sent a reminder that I would be switched to a pay monthly sub I would have acted on it.

Wasn't lightbox but similar company.

Jase2985

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#1877468 4-Oct-2017 20:41

have you read the terms and conditions and what did you find?

scuwp

3764 posts

Uber Geek

#1877502 4-Oct-2017 21:52

I assumed that it would just stop working.

Nice if it worked that way but I think here’s your problem. Subscription services usually carry on past the term date unless you cancel them. It will be in the terms and conditions that you agreed to when signing up (but most don’t read).

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marej

186 posts

Master Geek

#1878051 5-Oct-2017 19:13

just phone and complain etc and etc. I used to work for coy that did this and when customers complain, they just reverse the charge and stop the service.

Not saying it will fix it, but worth a try

mattwnz

19389 posts

Uber Geek

#1878054 5-Oct-2017 19:29

It is usually part of this subscription model many companies are now using, where you have to actively cancel the service if you don't want it. Even if it is a free intro period, they get your credit card details to start billing you after that period. I suspect the laws may change in the future to stop this though, but then again many people do want to continue the service, and if it stopped, you could experience service outages which could take some time to get working again, and potentially charges for reconnecting etc. What some companies now seem to be doing is allowing you to cancel straight away after joining, and then you can keep using the service up until the period you have paid up until has ended.