How we are being tricked into subscriptions?
Technology
Companies can grow their customer base by subscription which is an "easier route."
(BBC) - A huge range of firms now offer subscriptions ranging from food delivery to contact lenses and it is a growing market. Many offer a free trial, or discounts in exchange for people signing up.
However, people say they feel they have been locked in unintentionally because they have forgotten to cancel their subscription when their free trial period has ended.
For companies like Amazon auto-enrolment is a no brainer, according to research analyst Claire Holubowskyj at Enders Analysis.
She says companies can grow their customer base either by investing continuously to improve their products or by subscription which is an "easier route."
"The customer tries the product once and then is locked in, giving the company a relatively easy revenue stream at no extra cost".
Ms Holubowskyj says that there's been a shift in the consumer mindset in recent years which means we are now used to paying for products and services on a monthly basis, "It's just the done thing now and actually for customers there is a lot of benefit particularly with technology software where updates are just bedded in with the price now."
But subscription models are not necessarily a bad deal for customers, particularly if it enables them to have free products or discounts and many firms do offer reminders to customers when it's time to renew.
The UK government says its draft legislation - the Digital Markets, Competition and Consumers Bill - would "ensure consumers get a fair deal".
But Citizens Advice says it should go further, calling for auto-renewals to be banned altogether and making firms ask people to opt in, rather than opt out of subscriptions after a free trial.
"The government has to acknowledge the pressure on consumers' pockets. This has to be the start of reforms, not the end," says Matthew Upton, executive director of policy and advocacy.
John says he welcomes any attempt to make sure it's harder to be automatically renewed into a subscription, but he says he's still worried that he might get trapped again.
"It was such a stressful ordeal and left me with a lot of anxiety. It ridiculous, these companies only care about the money not the person".
