ACCC sets sights on ‘predatory’ free trial traps

The consumer watchdog has its sights set on “predatory” free trial offerings across the economy after a winning lawsuit against dating site eHarmony.

Speaking to NewsWire, Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said she would never put her card details into any service or product offering a free trial.

“It is predatory. Why am I being asked to put all these details in, including a credit card number?” she said.

“I actually now don’t take free trials. If I’ve made a decision to take a service, I go in, look at the terms and conditions, and just take it, but I don’t want to just do a free trial.”

In light of the eHarmony lawsuit, a key issue for the ACCC to address is automatic renewals buried in the terms and condition of products advertised as one-off purchases or free trials.

The ACCC successfully sued eHarmony this year over customers being deceived on the cost and duration of memberships.

Ms Cass-Gottlieb would not be drawn on how much the watchdog would ask the courts to fine eHarmony, or the compensation total it would call for, except that it needed to be above “the cost of doing business”.

While the watchdog waits for the courts to rule on successful lawsuits against eHarmony and Coles, the ACCC will turn its attention to the “site-wide” discount offerings of Black Friday and Christmas sales.

“Highly misleading and frankly unfair” limited stock and time warnings were also in the crosshairs, she said.

“When people are under pressure, when their (hip) pocket is really compressed, they have budget problems – You get put under pressure and they spend more than they can afford to.” Ms Cass-Gottlieb said.

She pointed out many of the Australians who filed complaints against eHarmony were lonely and looking for love.

The ACCC boss drew comparisons between Optus unlawfully selling phones and contracts to people in remote Queensland and the Northern Territory and eHarmony’s subscriptions that trapped lonely people, some going through a divorce or separation.

“We got hundreds of complaints from people. Love, romance, it’s not the sort of time when you’re going to be looking for the fine print on the app,” Ms Cass-Gottlieb said.

“We think thousands of members were likely to have been affected in the time period.”