Watch out for that automatic subscription

Yesterday’s Smart Company story about antivirus vendors unfairly debiting service subscribers is a timely reminder to check exactly what services you’re signed up for as the end of financial year approaches.

Automatic renewal programs are good for businesses like software companies as they provide a steady cash flow which is difficult to get when selling boxes off the shelf at the local computer superstore.

But for customers – be they business or consumer clients – these plans can be a trap that locks you into paying for an unwanted service.

Many businesses just pay any feasible looking bill they receive. I’m constantly amazed at how many organisations pay for phone lines unused for decades or are locked into internet plans that were poor value in 1998.

One company I saw a while back was paying $2000 a month for dial up internet services that hadn’t been used for over five years. So there’s decent money to be saved in reviewing exactly what you’re paying for.

For larger companies a common trap is to buy a group license for, say, 50 users when you only need 20, or perhaps none as your staff might have stopped using that software years ago.

This is also true for software as a service product where enthusiastic salesmen have a habit of signing customers up to expensive plans boasting features users don’t need.

For smaller companies and home users, software subscriptions are an obvious one to look for.

Many Windows computers still come laden with trial-ware – demonstration programs which have a time limit. To continue using them after 30 or 60 days you have to give your credit card details to the supplier’s website and often this locks you into a subscription plan.

The antivirus programs are even trickier as they need to be updated on a weekly, daily or even hourly basis, so even security programs bought off the shelf have update subscription plans that require a credit card to continue them after 12 months or so.

Often hidden deep in the terms and conditions is a clause that says your card will be automatically debited for a renewal towards the end of the subscription period. Some make it hard to terminate the agreement, which is how Symantec and McAfee have got themselves in trouble.

So, it’s worthwhile reviewing your fees and charges regularly, you may be delighted at the money you can save.

Paul Wallbank is a speaker, writer and broadcaster on technology and business. He grew PC Rescue into a national IT company and set up the IT Queries website. Paul has a regular ABC spot on technology matters.

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