Automatic renewals of online services, apps, and other subscriptions are extremely commonplace. While many find auto-billing convenient for specific recurring payments like loan payments or utility bills to avoid late fees or service interruptions, some companies have a business model that is inherently fraudulent.
This is not a new phenomenon. Here are four areas of unethical billing practices that span multiple industries:
“No-risk” or “no payment” free trial offers may intentionally fail to clearly disclose automatic renewal charges. The information about recurring payments is often hidden in fine print, or extorted with the use of pre-checked boxes for online transactions. That means consumers who may intend for a one-time purchase or free trial promotion are suddenly facing months or a full year of unauthorized charges.
Unlawful cancellation processes are also very common, meaning it’s easy to sign up, but unfairly difficult or even impossible to cancel. Think of cable subscriptions and gym memberships that require in-person cancellation even if you signed up online or by phone.
Phantom charges that bill for services that were never actually rendered. These are seen in areas like medical billing, credit card offers, airline bookings, hotel services, and vehicle maintenance. Charges for items you did not use in the rooms where you stayed, or fees for insurance coverages or invisible treatments you did not request, need, or actually receive.
Upselling or upcoding (medical), which is the practice of upgrading the charge on your bill while still delivering the lower-grade service or item. So-called “deluxe” versions, boosted ingredients, or a larger-sized package that contains the same units of a product as the smaller size.
Auto-renewals are just one aspect of the deceptive billing practices that plague consumers. Call our office at (513) 381-2333 so we can thoroughly investigate your case and identify the full extent of your situation.
If you identify a deceptive billing issue, you’re likely not the first person impacted. Contact an attorney to discuss your options for justice — by doing so, you’re already helping to spread the word and put a stop to unfair practices.