Auto Renew Subscription for Online Services (no warning)

Richard_RM

A year ago I signed up to a year's subscription to an online company called PlaceIt that gives you access to mock-up photos for artwork, people wearing t-shirts etc. Yesterday (18th Nov 2021) they charged £100 to my PayPal account for another year's subscription. I didn't know they were going to do this and if I had I would have cancelled it (I didn't even know the auto-renew was on). I *think* I've deactivated it in the account now (not sure as they don't exactly make it easy to find nor confirm it actually went off!). However I've checked my emails and there was absolutely no warning the subscription was going to renew. My understanding was that legally (in the UK at least) companies now have to give you fair warning that a subscription is going to renew. The company is actually Australian based so maybe the rules are different there, but does anyone know whether I was supposed to get a warning before they charged me again?

I "paid" via PayPal so if they are breaking the law but refuse to do anything about it, can I appeal to PayPal to refund the money?

TIA :-)

Sandtree

For certain things, eg insurance, there is a requirement to notify before auto-renewing but to the best of my knowledge there is no general requirement to unless their T&Cs or marketing promises that they will. 

As you say, they are based in Victoria, Australia and their terms name them as the legal jurisdiction so whatever the UK rules are is irrelevant. 

They will say however subscription is monthly and so assuming you've paid an annual fee they may be willing to consider a partial refund, their terms has an email to reach them on re cancellations.

born_again

Richard_RM said:

A year ago I signed up to a year's subscription to an online company called PlaceIt that gives you access to mock-up photos for artwork, people wearing t-shirts etc. Yesterday (18th Nov 2021) they charged £100 to my PayPal account for another year's subscription. I didn't know they were going to do this and if I had I would have cancelled it (I didn't even know the auto-renew was on). I *think* I've deactivated it in the account now (not sure as they don't exactly make it easy to find nor confirm it actually went off!). However I've checked my emails and there was absolutely no warning the subscription was going to renew. My understanding was that legally (in the UK at least) companies now have to give you fair warning that a subscription is going to renew. The company is actually Australian based so maybe the rules are different there, but does anyone know whether I was supposed to get a warning before they charged me again?

I "paid" via PayPal so if they are breaking the law but refuse to do anything about it, can I appeal to PayPal to refund the money?

TIA :-)

No. As the retailer has broken no rules.

As a aside. You can check in your paypal account for any auto renewals, and cancel them before they renew.

https://www.paypal.com/li/smarthelp/article/how-do-i-cancel-a-recurring-payment,-subscription,-or-automatic-billing-agreement-i-have-with-a-merchant-faq1067

Sandtree

born_again said:

Richard_RM said:

A year ago I signed up to a year's subscription to an online company called PlaceIt that gives you access to mock-up photos for artwork, people wearing t-shirts etc. Yesterday (18th Nov 2021) they charged £100 to my PayPal account for another year's subscription. I didn't know they were going to do this and if I had I would have cancelled it (I didn't even know the auto-renew was on). I *think* I've deactivated it in the account now (not sure as they don't exactly make it easy to find nor confirm it actually went off!). However I've checked my emails and there was absolutely no warning the subscription was going to renew. My understanding was that legally (in the UK at least) companies now have to give you fair warning that a subscription is going to renew. The company is actually Australian based so maybe the rules are different there, but does anyone know whether I was supposed to get a warning before they charged me again?

I "paid" via PayPal so if they are breaking the law but refuse to do anything about it, can I appeal to PayPal to refund the money?

TIA :-)

No. As the retailer has broken no rules.

As a aside. You can check in your paypal account for any auto renewals, and cancel them before they renew.

https://www.paypal.com/li/smarthelp/article/how-do-i-cancel-a-recurring-payment,-subscription,-or-automatic-billing-agreement-i-have-with-a-merchant-faq1067

Though its worth noting that cancelling payment methodology doesnt necessary cancel a renewal... as many people who cancel the DD for their insurance rather than bothering to call the company to say not to autorenew the policy gets renewed anyway and you then have to deal with cancellation fees and bad payer markers etc.

user1977

Also, even if UK laws had applied, it sounds like a B2B transaction so no consumer protection. No idea whether Australians laws would make a similar distinction.

born_again

Sandtree said:

born_again said:

Richard_RM said:

A year ago I signed up to a year's subscription to an online company called PlaceIt that gives you access to mock-up photos for artwork, people wearing t-shirts etc. Yesterday (18th Nov 2021) they charged £100 to my PayPal account for another year's subscription. I didn't know they were going to do this and if I had I would have cancelled it (I didn't even know the auto-renew was on). I *think* I've deactivated it in the account now (not sure as they don't exactly make it easy to find nor confirm it actually went off!). However I've checked my emails and there was absolutely no warning the subscription was going to renew. My understanding was that legally (in the UK at least) companies now have to give you fair warning that a subscription is going to renew. The company is actually Australian based so maybe the rules are different there, but does anyone know whether I was supposed to get a warning before they charged me again?

I "paid" via PayPal so if they are breaking the law but refuse to do anything about it, can I appeal to PayPal to refund the money?

TIA :-)

No. As the retailer has broken no rules.

As a aside. You can check in your paypal account for any auto renewals, and cancel them before they renew.

https://www.paypal.com/li/smarthelp/article/how-do-i-cancel-a-recurring-payment,-subscription,-or-automatic-billing-agreement-i-have-with-a-merchant-faq1067

Though its worth noting that cancelling payment methodology doesnt necessary cancel a renewal... as many people who cancel the DD for their insurance rather than bothering to call the company to say not to autorenew the policy gets renewed anyway and you then have to deal with cancellation fees and bad payer markers etc.

Agree, but the it looks like the PP systems sends a notification to the retailer. As I have done it & received a email from retailer sorry to hear you are leaving.

LaHostessAvecLaMostess

born_again said:

Sandtree said:

born_again said:

Richard_RM said:

A year ago I signed up to a year's subscription to an online company called PlaceIt that gives you access to mock-up photos for artwork, people wearing t-shirts etc. Yesterday (18th Nov 2021) they charged £100 to my PayPal account for another year's subscription. I didn't know they were going to do this and if I had I would have cancelled it (I didn't even know the auto-renew was on). I *think* I've deactivated it in the account now (not sure as they don't exactly make it easy to find nor confirm it actually went off!). However I've checked my emails and there was absolutely no warning the subscription was going to renew. My understanding was that legally (in the UK at least) companies now have to give you fair warning that a subscription is going to renew. The company is actually Australian based so maybe the rules are different there, but does anyone know whether I was supposed to get a warning before they charged me again?

I "paid" via PayPal so if they are breaking the law but refuse to do anything about it, can I appeal to PayPal to refund the money?

TIA :-)

No. As the retailer has broken no rules.

As a aside. You can check in your paypal account for any auto renewals, and cancel them before they renew.

https://www.paypal.com/li/smarthelp/article/how-do-i-cancel-a-recurring-payment,-subscription,-or-automatic-billing-agreement-i-have-with-a-merchant-faq1067

Though its worth noting that cancelling payment methodology doesnt necessary cancel a renewal... as many people who cancel the DD for their insurance rather than bothering to call the company to say not to autorenew the policy gets renewed anyway and you then have to deal with cancellation fees and bad payer markers etc.

Agree, but the it looks like the PP systems sends a notification to the retailer. As I have done it & received a email from retailer sorry to hear you are leaving.

That's not notification from you though.  Cancelling a DD also sends a notification but many have learned to their expense that the company does not consider that to be notification that the consumer is cancelling their contract.

born_again

Clearly the retailer in my case took it as I was cancelling. Or they would not have sent a sorry you are leaving.
As a aside this has nothing to do with Direct Debits. Which are a totally different beast. And the contact you get is from them saying you have cancelled your DD.

LaHostessAvecLaMostess

born_again said:

Clearly the retailer in my case took it as I was cancelling. Or they would not have sent a sorry you are leaving.
As a aside this has nothing to do with Direct Debits. Which are a totally different beast. And the contact you get is from them saying you have cancelled your DD.

It doesn't matter.  They can send that and still pursue you if their terms and conditions require cancellation via another method.