Can Ohio Consumers Sue Over Subscription Traps And Automatic Renewal Charges?
The subscription business model has become common in people’s lives. The practice of subscribing is common among folks when using various services such as Netflix, gym membership, food delivery services, and computer applications. The problem is that many businesses engage in deceptive practices, making it hard to unsubscribe from their products. The practice of being trapped in the subscription service is known as the “subscription trap.”
What is a subscription trap?
A subscription trap refers to situations in which a firm uses false advertising, hidden terms, or complex cancellation procedures to keep subscribers in the automatic billing system. Typical cases include free trials that automatically convert to paid subscriptions, subscriptions that renew without any notifications, or cancellation procedures that require consumers to follow many steps for their requests to be considered.
Many consumers are unaware of their subscription status until they find that they have incurred unnecessary charges in their bank or credit card statement. Others may want to unsubscribe but still receive bills because the firm states that the unsubscribe process has not been completed.
How automatic renewal charges create problems
An automatic renewal clause is not illegal in itself. In most cases, businesses can offer their customers subscription services, provided there is proper disclosure of renewal details and the consumer’s consent is obtained.
However, there is an issue when the business fails to disclose such details or when it makes it extremely difficult for the consumer to cancel the service.
For instance, the consumer might agree to sign a contract stating that the service is on “trial,” unaware that the monthly charges will continue once the trial period elapses. Another instance is one where it becomes hard for the consumer to cancel the contract.
In such instances, the consumer can take legal action against such practices.
Ohio consumer protection laws
The rights of consumers in Ohio are safeguarded under the Ohio Consumer Sales Practices Act (CSPA), which forbids unfair and deceptive practices in consumer transactions. An unfair practice could arise from misrepresentation of the subscription agreement and its terms, or from practices involving automatic renewals, among others.
In certain situations, compensation for unauthorized charges may be available. Attorney’s fees may also be awarded to consumers if a company is found to have knowingly violated the law.
Other federal statutes may also be applicable in certain situations.
What should consumers do?
If you suspect you might have fallen into the subscription trap, document every interaction you have with the company, including email exchanges, screenshots, cancellation confirmations, payment receipts, and advertisements that led you to subscribe.
You should always be on the lookout for recurring charges on your credit card and bank statements that you do not recognize.
Talk to a Columbus, OH, Consumer Law Attorney
Trouble unsubscribing from a service? Kohl & Cook Law Firm, LLC, may be able to help. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin looking at your case right away.
