Protect your business from unwanted charges

The Commission is increasingly hearing from small businesses locked into unwanted subscription-based services contracts, and is reminding small businesses to ensure they know their rights and obligations before signing up.

With the increasing number of subscription-based services available to small businesses, there is a growing need for diligence with contracts and awareness of potential recurring payments. If agreeing to annual subscription, its important to be aware they can often automatically renew and it may not always be possible to cancel the subscription and obtain a refund. 

Commissioner Chris Lamont warns small businesses to be wary of entering contracts if they are uncertain about the terms, conditions and length of the contract. 

"We have seen businesses struggling with changing or exiting contracts which have unclear terms and conditions, are read out to them over the phone, renew automatically or incur payments after a trial period without the customer being aware.”

It can be tempting to try and get out of the recurring payment by cancelling a payment card or reporting it as fraudulent, but doing so could inadvertently trigger additional challenges, particularly if a debt collection agency becomes involved. 

“If a debt is not properly dealt with, it could even impact your credit rating so it’s important to first try and resolve your dispute with the service provider”. 

If you are stuck paying for unwanted charges or a recurring subscription, there are a range of services you can utilise. For more information see ‘How to deal with unwanted charges and recurring payments’.

Small businesses experiencing a problem with a subscription-based service or digital platform can contact us to discuss how we may be able to help.

For more information on digital platforms, see our factsheet.