How to avoid buying clubs scams AARP The Magazine
How to avoid buying clubs scams - AARP The Magazine
"I estimate consumers lose about $2 billion a year to these kinds of companies," says Iowa attorney general Tom Miller, who sued two of the largest firms that run these clubs.
Next: Congress passed legislation in 2010 to prevent third-party sellers from getting financial information without having clear consumer consent. But Ioana Rusu, regulatory counsel for Consumers Union, warns of a loophole: The federal law applies only to online transactions, not telemarketing calls or direct mail. "It's like the game Whack-a-Mole," says Rusu. "Whenever you tackle one area, the practices pop up in another spot." To protect themselves, consumers should be wary of any "free trial" offers. Be certain to ask whether you will be billed automatically if you don't cancel, and watch for unauthorized charges. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
Beware of Buying Clubs
Free trials that aren' t really free and other ways buying clubs can scam you
By the time Jane Hrabak, 59, figured out what the unfamiliar charge on her bill was for, she was out about $1,000. A "buying club" she doesn't recall joining had been draining first $10, then $20, a month from her account. "I felt so dumb," says the Belle Plaine, Iowa, commercial artist. See also: In 2009 the U.S. Senate Committee on Commerce estimated 35 million Americans had been enrolled in such buying clubs since 1999. These clubs aren't brick-and-mortar retailers like warehouse clubs: For a membership fee, they offer discounts on products sold by other firms. charge that they use to lure members. When shoppers click on a pop-up that offers a discount for an online purchase, accept a "free trial" from a , or cash a small check award mailed to their home, they often miss the fine print that says they've agreed to a monthly fee ranging from $9.95 to $19.95."I estimate consumers lose about $2 billion a year to these kinds of companies," says Iowa attorney general Tom Miller, who sued two of the largest firms that run these clubs.
Next: Congress passed legislation in 2010 to prevent third-party sellers from getting financial information without having clear consumer consent. But Ioana Rusu, regulatory counsel for Consumers Union, warns of a loophole: The federal law applies only to online transactions, not telemarketing calls or direct mail. "It's like the game Whack-a-Mole," says Rusu. "Whenever you tackle one area, the practices pop up in another spot." To protect themselves, consumers should be wary of any "free trial" offers. Be certain to ask whether you will be billed automatically if you don't cancel, and watch for unauthorized charges. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures