The ACCC’s warning comes on the back of enforcement action it has taken against two retailers in relation to ongoing subscription services they offered to customers. Some customers of the retailers complained to the ACCC that they were unaware they had signed up to ongoing subscription payments and that the retailers failed to adequately disclose details of the subscription services to customers.
The warning highlights the importance of organisations having clear and prominent terms and conditions in relation to any subscription or membership services offered to customers. These terms and conditions should be upfront about the cost of subscription or membership fees and not place restrictions on the cancellation of unwanted services.
“Subscription trap” is a term used to describe online retailers treating a customer’s decision to make a single purchase as consent to signing them up to a paid ongoing subscription service without adequately disclosing the subscription service involves ongoing fees.
View the ACCC media release here.