Hubble Contacts
The first box may be “free” (sort of) but the second one isn’t and it’s on its way before you know it.
Online retailer Dossier claims to offer premium fragrances inspired by luxury scents for 70 to 90 percent of what designer brands charge. But if you don’t take a specific action while shopping on the company’s website, you may still end up paying hundreds of dollars.
That’s because the “d+” prices advertised on Dossier’s website, shown above, are Dossier+ membership prices and if you don’t select “pay as guest” after adding an item to your cart, the site automatically enrolls you in a $29 a month recurring subscription.
In recent months, consumers have complained to the BBB about unauthorized monthly charges on their credit card statements that have piled up month after month – in some cases, totaling over $200 – after unknowingly signing up for Dossier+.
It’s easy to see how this can happen. After receiving a tip from a reader, TINA.org investigated the company’s marketing and billing practices and here’s what we found.
When consumers add an item to their cart on Dossier’s website, the Dossier+ membership is the default payment option. If consumers don’t want to become a member, they must select “pay as guest.” But this “alternative” payment option can easily go unnoticed as it is set against a gray background, as a large, pink button at the bottom of the cart encourages consumers to “go to checkout.”
But this is not actually the bottom of the cart. If you hover over the cart and scroll down, you will find additional information, including the actual terms of Dossier+ memberships.
Here, it states that, “With Dossier+, you pay $29/month that becomes store credit and gives you extra discounts. You can pause, cancel or skip your membership anytime. You will pay a $0.95cts fee now for the first trial month and as a result will enjoy an extra 10% off on this order.”
After clicking on “go to checkout,” consumers are taken to a page where Dossier requests, among other things, payment information, and where there are additional disclosures about the terms of Dossier+ memberships but the option to “pay as guest” is gone.
What does the law have to say about all of this?
Under the Restore Online Shoppers’ Confidence Act, which the FTC has used to take action against dozens of companies since 2014 (and which TINA.org has cited in complaints against HelloFresh, Savage X Fenty, and others), online sellers are prohibited from charging consumers through negative-option offers unless they meet certain requirements, including disclosing all material terms of the transactions before obtaining consumers’ billing information.
ROSCA also requires negative-option sellers to provide a simple, reasonable means for consumers to cancel their contracts and several consumers have also complained to the BBB that Dossier makes it hard to cancel memberships.
The bottom line? When shopping online, watch out for those preselected boxes.
TINA.org reached out to Dossier for comment. Check back for updates.
Find more of our coverage on negative-option offers here.
Our Ad Alerts are not just about false and deceptive marketing issues, but may also be about ads that, although not necessarily deceptive, should be viewed with caution. Ad Alerts can also be about single issues and may not include a comprehensive list of all marketing issues relating to the brand discussed.
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