Book or music clubs are a popular way to buy goods without having to leave your home. Many of them are legitimate and upfront in their terms and conditions. Still, it’s a good idea to keep the following in mind:
Quick Tips
- Ordinarily, a business can’t send you something out of the blue or decide to change what they provide you under an agreement and then expect you to pay for it. If this happens, it’s what people often call “negative-option billing” – billing consumers for goods they haven’t requested or making a change to contracted goods or services without telling them. The Consumer Protection Act, 2002 prohibits these practices and offers remedies when they happen.
- Legitimate subscription clubs tell you in advance how they work and that the goods provided will change as part of the agreement. This is not negative-option billing as you agree upfront to be billed and to see the goods change. You wouldn’t be happy if the book club kept sending you the same book every month! It’s important for you to read the offer carefully and remember to return goods you decide you don’t want, in keeping with the agreement.
- Subscription club agreements must be in writing if they involve payments exceeding $50.
Your Rights
- By law, a company cannot change an existing contract without your consent or provide you with a notice of the change and the opportunity to decline (e.g. substitute an agreed-upon product for another or “upgrade” your subscription by giving you more – and charging you more for it). If this happens, you should follow the File a complaint protocol to take action against the company.
From our Consumer Files
The case of the broken record (contract)
An elderly consumer contacted the ministry after receiving calls from a collection agency. The agency wanted payment for several monthly shipments of CDs the consumer had apparently ordered through a subscription service. The consumer, who didn’t own a CD player, disavowed any knowledge of a contract, though the company had a signed order form on file. Acting upon their best customer service standards, the company withdrew the charges once the consumer returned the unopened merchandise.
The case of the absent student
A consumer called the ministry to report that a collection agency was calling on behalf of a CD subscription club. The consumer was said to have owed more than $300. The consumer, who was not a music fan, said he knew nothing of the contract.
Upon further discussion with the consumer, it was revealed that his son, who had the same name as the consumer, had moved away to attend university at about the same time as the contract started.
The son said he had signed up with the company only to receive a limited number of selections. As the contract operated under “negative option,” he was responsible for returning any selections he didn’t wish to keep. Many more CDs than he had wanted had arrived at his parents’ home. He wasn’t there to receive them and, as they were not returned to the company within the specified time period, he was responsible for them.
The Consumer Services Bureau spoke with the company, which was under no obligation to take back the unwanted CDs and refused to do so. The university student was responsible for payment.
Services for Business
Services for Individuals
