Can Ohio Consumers Sue Over Hidden Junk Fees And Subscription Traps?
Consumers enroll in programs anticipating certain pricing. Later, they find out there were unexpected costs, automatic renewals, and complex cancellation policies. Subscription programs, streaming websites, and online shopping subscriptions are examples of how the practice of “junk fees” and subscription schemes has spread across all consumer areas. Ohio residents could have legal remedies against unfair billing practices.
Understanding junk fees and subscription traps
A junk fee is a charge that a consumer might not expect. Most often, such charges are introduced into a purchase process after it has started or even after the consumer has committed to making the purchase. Junk fees can include:
- Processing charges
- “Service” charges
- Resort fees
- Conversion from free to paid subscription
- Automatic renewal without clearly defined terms
Subscription traps are situations where a company makes it easy to subscribe to a service but hard to terminate that subscription. In some cases, customers must call in and wait on hold or even write to get out of the agreement despite the ease of signing up.
Ohio consumer protection laws may apply
The Ohio Consumer Sales Practices Act (CSPA) protects consumers in Ohio. Under the CSPA, suppliers must not conduct themselves unfairly, deceptively, or in an unconscionable manner during their dealings with consumers.
There are various ways a supplier can commit a CSPA violation. These include:
- Failure to disclose ongoing charges
- Pricing misrepresentation
- Unapproved charges
- Deliberate obstacles to cancellation
- Billing beyond cancelation requests
Depending on the situation, a consumer might be able to claim actual damages, statutory damages, and legal costs.
Federal legislation may also be applicable in certain instances. The FTC has stepped up its scrutiny of firms employing deceptive subscription tactics and misleading online billing practices.
Automatic renewals are facing increased scrutiny
Recurring payment schemes are not always fraudulent. Many reputable businesses use such schemes as they are more convenient. Nonetheless, businesses have to ensure that consumers receive the following information before any transactions:
- Terms of renewal
- Payment schedule
- Consumer rights to cancel payments
- Expiration dates of trial periods
The consumer must be aware of all the details prior to making the purchase. Problems emerge because such information is included in the small print or is hard to find. In some cases, businesses keep charging customers despite their efforts to cancel the subscription.
What consumers can do
Consumers who think that they have been deceived by concealed charges or subscription fees must retain copies of:
- Billing documents
- Confirmation messages
- Screen captures of ads and payment webpages
- Requests for termination and corresponding replies
They might also consider checking the company’s user agreements to see if any information was available during the sign-up process.
In certain cases, consumers may be able to dispute the charges with their bank or credit card issuer. Some may find it helpful to consult a lawyer regarding possible litigation under consumer protection laws in Ohio and at the national level.
Talk to a Columbus, OH, Consumer Protection Lawyer Today
Kohl & Cook Law Firm, LLC, represents the interests of Ohio residents who are being scammed by junk fees or subscription traps. Call our Columbus consumer lawyer today to schedule an appointment, and we can begin discussing your next steps right away.
