This sneaky tactic almost cost me $400. It’s time we do something about it

The digital age has brought us many conveniences, but it has also opened the door to new forms of exploitation. One of the most pervasive is the con of automatic renewal payments.

The root of the problem lies in the system that conditions us to mindlessly accept terms and conditions, often without a second thought. Whether it’s approving the latest software update or simply reserving a restaurant table, we’re all too familiar with the endless “I agree” checkboxes.

The root of the problem lies in the system that conditions us to mindlessly accept terms and conditions, often without a second thought.Credit: Wayne Taylor

These terms and conditions can – in theory – be read elsewhere, but hardly anybody does. And that’s not by chance, but by design. Most are as long as a novel, and full of legal jargon.

It’s no wonder that, according to a Deloitte survey, over 90 per cent of consumers accept terms and conditions without reading them, highlighting just how widespread this issue is.

A particularly sneaky tactic is the so-called “free trial”. Whether it’s for seven days, 14 days, or a month, the process is always the same. You’re required to subscribe, provide your payment details up front, then cancel within the specified timeframe if you’re not satisfied.

Of course, life gets busy, and before you know it, the trial period has lapsed. Suddenly, you’re hit with an automatic renewal notice for a service you didn’t even realise you’d agreed to continue.

We can’t solve this problem one consumer at a time. We need regulators to step up.

This scenario is not hypothetical – it’s personal. In the past month alone, I’ve fallen victim to it twice. The first time was with SurveyMonkey, a popular website for creating surveys. The second was with MyHeritage, a platform for tracing your ancestry. Both instances highlight how these systems are rigged against consumers and rely on user oversight of the terms and conditions.

SurveyMonkey hit my American Express card for a charge I was confident I hadn’t approved. I rang up American Express and told them to reverse it. Their response? “SurveyMonkey says you authorised it.” How? By clicking a link, apparently.

After 30 years as a cardholder without ever disputing a charge, you’d think they’d give me the benefit of the doubt. Nope. It wasn’t until I lodged a complaint with the Australian Financial Complaints Authority (AFCA) and pushed back that American Express finally refunded the money.

MyHeritage was worse. They took $407. When I called them out, they smugly pointed to their automatic renewal terms. I threatened to take them to AFCA if they didn’t give me a refund. First, they offered to refund 50 per cent. I said no. Eventually, they caved in and refunded the full amount. But it shouldn’t take this level of persistence to get a refund.

These stories are just the tip of the iceberg. Companies are banking on us being too distracted or too busy to notice these sneaky charges. And why wouldn’t they? The system is set up to exploit us.

The Australian Competition and Consumer Commission reports that over 30 per cent of consumer complaints involve unauthorised charges linked to automatic renewals.

But let’s face it: we can’t solve this problem one consumer at a time. We need regulators to step up. Opt-in renewals, clearer disclosures, and stricter rules around subscription transparency are essential. The UK has already introduced stronger protections in this area. It’s time that Australia followed suit.

Until then, stay sharp. Be the squeaky wheel. Because if we don’t hold these companies accountable, who will?

Noel Whittaker is the author of Retirement Made Simple and other books on personal finance. Questions to: [e-mail]

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