Credit-card companies take measures against hidden subscriptions
Credit-card companies Visa, Mastercard and American Express have taken measures to protect consumers against hidden subscriptions. They will mandate businesses that offer subscriptions online to clarify this when consumers pay through these credit-card companies. This requirement seeks to prevent consumers that believe they are purchasing a one-time offer from ending up with a subscription anyway. This has been the result of a collaboration between the various European consumer authorities and the European Commission.
What is this case about?
Approximately one in ten consumers in Europe has taken out an unwanted subscription online at least once. In those situations, traders employed manipulative online techniques. Consumers were under the assumption that, for example, they only took out a free trial or purchased a low-priced product, whereas, in reality, they suddenly got stuck with a subscription, as well as with regular charges on their credit-card bills. That is a misleading practice. The credit-card companies now mandate these traders to clarify during the payment process that consumers are taking out a subscription, and to state the terms and conditions thereof.
ACM and the digital economy
The digital economy is a key priority on ACM’s Agenda. The basic principle of ACM’s regulatory efforts is that people and businesses are able to reap the benefits of the digital economy. Previously, ACM published guidelines regarding online misleading practices, in which ACM explains at what point online persuasion turns into deception.
- Read the press release of the European Commission
- Read more information on the website of the European Commission