Subscriptions - They Can Be A Trap

Dating apps can promise romance — but make sure you don’t end up in a long-term relationship with the subscription.

The Federal Court found eHarmony misled Australian consumers about subscription pricing, renewals and membership duration. Some plans could automatically renew for another 12 months, potentially leaving customers with a much bigger bill than expected.

But this warning goes well beyond dating apps.

We subscribe to everything these days — streaming services, antivirus software, cloud storage, fitness apps, Microsoft 365, online newspapers and software such as Adobe Creative Cloud.

And the price you see advertised isn’t always the most important number.

Something advertised as, say, $20 a month may actually be a 12-month commitment. You need to know the minimum total cost, whether it automatically renews, when you need to cancel and whether cancelling early attracts a fee.

Adobe subscriptions are a good example. Customers have complained over the years about discovering that what appeared to be a monthly subscription was actually an annual plan paid monthly, with an early cancellation fee if they tried to leave before the year was up.

And don’t assume deleting an app cancels a subscription. It often doesn’t. You may need to cancel through Apple, Google, the company's website or wherever you originally signed up.

My suggestion is simple: keep a subscription record.

Write down what you subscribed to, how much it costs, whether it's monthly or annual, the renewal date and, importantly, the date you need to cancel by.

Better still, when you take out a 12-month subscription, immediately put a reminder in your calendar for a few weeks before renewal. That gives you time to decide whether you still want it rather than discovering the renewal when it appears on your credit card.

And every few months, check your bank and credit-card statements for recurring payments. You might be surprised how many $10, $20 and $30 subscriptions you've forgotten about.

Subscriptions aren't necessarily bad. They're convenient and sometimes good value.

The problem starts when we don't understand what we've agreed to.

So before clicking Subscribe, spend another minute checking the terms and conditions.

Because whether it's a dating app, streaming service or software package, you should always know how to get out before you get in.

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