They're on TV, in print and on the Internet: Ads for "clubs" that automatically send you a product or service - like flowers, books, movies or software. If you join one of these "continuity" plans, you're agreeing to receive merchandise or services automatically at regular intervals (often monthly), without advance notice, until you cancel.
Often, you can join a plan simply by accepting an introductory offer of merchandise or services. Continuity plans may offer an introductory "free trial period" to let you check out the merchandise or service and decide whether to join the plan. If you keep the merchandise beyond the free trial period or fail to cancel the service within the free trial period, not only must you pay, you automatically become a plan member.
Joining a continuity plan means you agree to the plan's sales method as long as you're a member. You'll automatically get periodic shipments of merchandise or delivery of services. You won't get any announcements or rejection forms before each shipment or service period. The shipments or services continue until you cancel your membership.
Some continuity plans give you an "approval" period. That way, you can check out the merchandise and decide whether to keep it and pay for it. Many programs selling collectibles, like stamps or coins, work this way. Other continuity plans require you to pay for merchandise when you receive it.
Sellers must give you information about the plan's terms and conditions, clearly and conspicuously, in their promotional materials. These terms may include:
Usually a plan will use the same billing method for future shipments that it used for the introductory merchandise or service period. For example, if the plan sent you a bill for the introductory merchandise, you will likely get bills each time you get another shipment. If you used a credit or debit card to buy the introductory merchandise, however, the plan may seek your consent, at the time you enroll, to charge that card automatically for all future shipments.
Continuity plans are promoted in newspapers, magazines, TV and radio commercials, direct mail, and over the telephone and the Internet. Before you agree to any plan:
If you have a problem with your plan, try to resolve it with the seller first. If you're dissatisfied with the response, contact your local Better Business Bureau or local consumer protection agency.
The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.