Woman charged €100, minutes after agreeing to free trial, despite unsubscribing
Website offered three-day free trial but offered subscribers no option to cancel the trial or manage the subscription
A consumer recently contacted the Malta Competition and Consumer Affairs (MCCAA)’s Office for Consumer Affairs concerning a website that advertised a three-day free trial for an AI text-editing service. Believing she could test the service at no cost, the consumer entered her account details and used the tool briefly to see whether it could be useful. As the service did not meet her expectations, she decided to end the trial by unsubscribing to the service.
However, to her surprise, there was no visible option on the website to cancel the trial or manage her subscription. She then deleted her account, assuming that would resolve the issue. Despite all this, she was still charged over €100 on the same day, just minutes after signing up.
Since the company offering the AI text-editing service was based neither in Malta nor in the EU, the Office for Consumer Affairs could not directly assist in this case. The consumer was, however, advised to contact her bank and file a claim for an unauthorised charge.
This case highlights a growing issue where so-called ‘free trials’ lead to immediate charges without clear consent or cancellation options, a practice that may amount to unfair commercial practice or even inertia selling under consumer protection legislation.
Traders sometimes engage in inertia selling by using pre-ticked boxes or default settings during online purchases
Consumers should be on the lookout for deceptive free trials, as otherwise they may find themselves receiving goods or being charged for services they did not order. For instance, a consumer might discover unexpected monthly charges for a streaming service after a so-called ‘free trial’. In other cases, a consumer may receive several items despite ordering only one and then be asked to pay for the extra products they never agreed to buy.
Under consumer protection rules, ‘inertia selling’ is prohibited. This practice creates a false sense of obligation, pressuring individuals to pay for goods or services they never ordered. Whether it is an unexpected delivery or an automatic subscription, consumers are not legally required to pay nor to return the goods or to take any action in response to unsolicited offers.
Traders sometimes engage in inertia selling by using pre-ticked boxes or default settings during online purchases to impose extra charges on consumers. For example, a consumer buying a mobile phone online might later discover they have been automatically charged for an extended warranty, simply because they did not notice a pre-selected option during checkout.
According to consumer protection legislation, any additional cost must be clearly presented as an opt-in, meaning the consumer must actively agree to it before any payment is processed.
Consumer legislation protects consumers from inertia selling by making it illegal for sellers to demand payment for goods or services that were not requested. If a seller insists that a contract is in place, it is up to them to provide clear evidence, such as a signed agreement or order confirmation, proving the consumer’s consent.
For instance, if a consumer downloads a mobile app offering a free trial and later finds a charge on their bank statement, without having clearly agreed to a paid subscription, they are not legally obliged to pay. The seller must prove that the consumer knowingly accepted the subscription, such as by ticking a box or confirming payment. If money has already been withdrawn, the consumer has the right to request a full refund.
Consumer laws also make it clear that individuals are not obliged to return unsolicited goods. If a seller wants the items returned, they must arrange and pay for the return shipping.
Occasionally, goods may be delivered to consumers by mistake. For instance, a parcel may either be addressed to someone else or delivered to the wrong address. In such cases, consumers are to inform the seller about the error, and the latter may either arrange for its collection, or, if a direct pickup is not possible, ask the consumer to return the goods by post.
However, the consumer should not be expected to bear any cost or inconvenience. It is the seller’s responsibility to organise return shopping or reimburse any postage expenses incurred. Consumers should also keep a record of all communication and transactions, including e-mails, messages and postal receipts. These records can be crucial in case of a dispute, particularly when seeking reimbursement for return costs.
Consumers should exercise caution when signing up for free trials, especially when asked to provide credit card details during the registration. In most cases, this indicates that a charge will be applied automatically once the trial period ends. Hence, if consumers do not wish to pay for the service, it is essential that they cancel the subscription before the trial expires.
If a dispute with a seller over unsolicited goods or services cannot be resolved, consumers can refer the matter to the Malta Competition and Consumer Affairs Authority (MCCAA) when the seller is based in Malta. For traders operating from another EU member state, consumers should contact the European Consumer Centre Malta for assistance.
Odette Vella is director, Information and Research Directorate, MCCAA.