Online home improvement platform hipages
Following an ACCC investigation, hipages has provided the ACCC with a court-enforceable undertaking under which it has committed to clearly disclose its subscription renewal and cancellation policies in its telephone scripts and email communications.
The hipages platform connects tradespeople and small businesses who subscribe to hipages with consumers who need work completed.
"Many subscribers were unaware that they had to specifically opt out of hipages' automatic 12-month renewal, and that there was only a very short cooling off period in which they could avoid paying an early termination fee," ACCC Deputy Chair
"When some people attempted to cancel their auto-renewed contracts, they were told they would have to pay out the full 12-month term."
The undertaking given to the ACCC also includes commitments by hipages to review its complaints handling system, review and seek to resolve outstanding complaints by subscribers (including by remediation) and to implement a consumer law compliance program.
"The rise of online marketplaces has brought greater convenience to many people, but it's also led to an increase in sneaky tactics such as subscriptions that are difficult to get out of,"
"Businesses, including online platforms, must be clear and up-front with their customers about important contract terms such as renewals and cancellations. Failure to do so risks breaching the Australian Consumer Law and may result in enforcement action."
A copy of the undertaking is available at hipages Group Pty Ltd Background
'Subscription trap' is a term that describes practices used by online businesses that make it difficult for consumers to cancel a particular subscription service. The fact that the subscription involves ongoing fees is usually not adequately disclosed, and consumers are often enticed into it with a free trial or discounted price.
The platform has more than 34,000 subscribers who pay between
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(C) 2023 M2 COMMUNICATIONS, source