Freebies, at What Cost?
Frequent visitors to my blog may notice that I’m cautious when dealing with the marketing ploys of telecommunication companies - term contracts, questionable savings, and hidden costs, you name it. (See my blog “Short-Term Gains, Long-Term Pains,” posted November 27, 2008.)
I recently received yet another seemingly amazing offer from my telecom - “Visit our store to activate your 100 free local minutes!” As I exceed my monthly plan limits almost every month, I was very tempted to accept the offer.
However, no doubt because I’m a consumer rights lawyer, my instincts were telling me something wasn’t quite right with the offer. I found it hard to believe that the telecom would throw such a generous freebies to existing paying customers. Free offers are generally aimed at recruiting new subscribers.
So I dug around some more. It turned out the “free” 100 minutes do come with strings attached. By claiming the 100 minutes, you agree to sign up for a special bundle with the first month free.
Of course, when you go to the store to activate the minutes, the salesperson will assure you that the 100 minutes are free and you get to try out the new bundle at no cost for the first month. The salesperson assumes you want to sign up for the services and says very little about your obligation to keep paying for the special bundle after the first month expires.
This sales pitch is of questionable legality. Depending on what is actually being said by the sales representative, it may or may not violate one of Ontario’s consumer protection laws.
In reality, however, once you claim the “free” 100 minutes, it’s very hard to change your mind and get out of the deal. It’s difficult to prove that the salesperson failed to disclose the terms of the agreement. It’s even more difficult to get any kind of meaningful compensation as a result of the misrepresentation.
Consumers beware: freebies, at what cost?