Key takeaways

Before you give a card number for a “free” trial, find out when the trial ends, what it costs after that, and exactly how to cancel. If you cannot find out, do not sign up.

  • The FTC says to research the company, confirm how to cancel, and uncheck any pre-selected boxes that authorize ongoing charges.
  • If you are charged, dispute it with your card issuer right away and report it to the FTC.
  • A free trial is not always a scam. The problem is hidden terms and hard cancellation.

Got a name, website, or phone number from the sender? Check the scam directory.

How a free trial trap works

The FTC calls these “negative option” offers: free trials, auto-renewals, and subscriptions that continue until you stop them. Legitimate companies use them. The trap is in the terms you are not shown, or in a cancellation process you cannot find.

The FTC gave an example in a 2023 alert. A marketer advertised “free” skin products with a $4.99 shipping and handling fee. Buyers were not told they would be charged if they did not cancel within 14 or 15 days. The company then charged more than $90 for the cream and enrolled customers in monthly subscriptions, and the FTC said canceling was difficult. The marketer agreed to turn over close to a million dollars in assets for partial refunds.

The pattern also shows up in apps, streaming, software, and “membership” add-ons that appear at checkout. The FTC’s advice is the same in each: know the terms before you pay, and check your statements. For fake-shop risks, see online shopping scams.

Eight warning signs

  1. A “free” offer with a shipping or handling fee. In the FTC’s example, the small shipping fee was how the company got a card number. Treat any “free” offer that asks for a card as a purchase until proven otherwise.
  2. A cancel-by date you were not clearly shown. The FTC example involved a 14 or 15 day window that buyers were not told about. Look for the date the trial ends and what happens on that date.
  3. Pre-selected boxes at checkout. The FTC advises checking for pre-selected boxes that may authorize ongoing charges, and unchecking any you do not agree with.
  4. No clear way to cancel. The FTC advises confirming how to cancel future shipments or services, and says not to sign up if the cancellation process is unclear.
  5. A much larger first charge than you expected. In the FTC example, buyers who expected to pay a small fee were charged more than $90 for the product.
  6. A monthly plan you never chose. The FTC says customers were enrolled in monthly subscriptions as well. A trial that quietly becomes a recurring plan is the core of the trap.
  7. A company with a trail of complaints. The FTC advises researching the company by searching its name with words like “scam” or “complaint” before you sign up.
  8. Charges on your statement you do not recognise. The FTC advises disputing unauthorized charges with your credit or debit card issuer right away. Check statements regularly, so you notice early.

How to check an offer in two minutes

  1. Read the terms before you enter a card number. Find the length of the trial, the price after it, and how often you will be billed.
  2. Find the cancellation steps now, before you sign up. If you cannot find them, the FTC advises not signing up.
  3. Uncheck any pre-selected boxes, as the FTC advises, and screenshot the order page so you have a record of what was promised.
  4. Search the company’s name with “scam” and “complaint”, as the FTC suggests.
  5. Set a calendar reminder for a day before the trial ends. If you decide to keep the service, nothing is lost.

If you have been charged

Move quickly, because the sooner you dispute a charge the easier it is to explain. These steps follow the FTC’s advice.

  1. Cancel the subscription. Use the company’s stated cancellation method, and keep a record of when and how you did it. If you cannot find a way to cancel, take screenshots and move to the next step.
  2. Dispute the charge with your card issuer right away. The FTC advises disputing unauthorized charges with your credit or debit card issuer. Use the number on the back of your card or your online account.
  3. Ask about future charges. Ask the issuer whether it can block further charges from that company, or issue a new card number.
  4. Report it. The FTC asks people to report problems with free trials at ReportFraud.ftc.gov. See the list below for other countries.
  5. Watch for a follow-up. If someone offers to get your money back for a fee, see recovery scams.

Where to report

More help from official sources

Scambaba is an independent educational project. Reporting and recovery options depend on where you live. How these guides are researched is on the editorial policy.

Frequently asked questions

Are free trials a scam?

Not by themselves. Many companies run honest trials. The FTC’s concern is offers that hide the terms, charge more than expected, or make canceling difficult.

What is a negative option?

It is an offer such as a free trial, auto-renewal, or subscription that continues until you stop it. The FTC covers these under its negative option guidance.

How do I stop the charges?

Cancel with the company, keep a record, and dispute unauthorized charges with your card issuer right away. The FTC also asks you to report problems at ReportFraud.ftc.gov.

Will my bank refund me?

It depends on the facts and the issuer’s process, and nothing is guaranteed. The FTC advises disputing unauthorized charges right away and notes that federal law protects you from unauthorized card use.

How do I avoid the trap?

Research the company, confirm how to cancel, and uncheck pre-selected boxes. If the cancellation process is unclear, the FTC says not to sign up.