HOME > NEWS&TOPICS > News > Do you think "I have canceled" or "I haven't signed up"? It might be a wrong idea. You might be charged for a subscription unexpectedly!

[October 2021]

Do you think "I have canceled" or "I haven't signed up"? It might be a wrong idea. You might be charged for a subscription unexpectedly!

If you sign up for a subscription and pay a fixed amount periodically, you can use specified products or services during a contract period. In general, a subscription is automatically renewed and a fixed amount is billed periodically unless a request for cancellation is made.

Since FY2021, PIO-NET* receives around 500 subscription-related inquiries and complaints per month from local consumer affairs centers across Japan. In most cases, subscription orders are placed online, while some physical shops accept subscription orders over the counter. There have been cases where consumers signed up for a subscription without correctly understanding it and later they were charged unexpectedly.

Therefore, NCAC has summarized problems with subscription contracts made online to issue a consumer alert.

  1. * PIO-NET is a database that collects information on inquiries concerning consumer affairs by linking NCAC with local consumer affairs centers and similar organizations across Japan via an online network.

About subscription

  • A subscription may include a free trial period. If a user doesn't cancel a subscription within the free trial period, the service automatically switches to a paid subscription and the user will be billed a fixed amount periodically, for instance, once a month or once a year.
  • A subscription contract can be made online with a PC or smartphone. Users may be requested to enter their credit card number on the order page. Contract details are shown including the start date of a paid subscription (e.g. "If you don't make a request for cancellation within a free trial period, the service automatically switches to a paid subscription").
  • Services offered by subscription include: video distribution, music distribution, rental service, access to learning materials, specialist consultation, dining out, etc.
  • Users can receive a subscription service during a contract period. Remember that users will be billed whether or not they use the service. A subscription is automatically renewed and a fixed amount is billed periodically unless a request for cancellation is made.

Sampling of inquiries and complaints

[Case 1]
I used a paid Q&A site, which I wrongly assumed to be a manufacturer's official site. I was charged a monthly fee.
[Case 2]
I forgot to cancel a video distribution subscription. I was charged a fee although I had not used the service.
[Case 3]
I don't remember which email address I used to sign up for a paid membership of a shopping site. I cannot cancel the membership.
[Case 4]
I downloaded a diet training app to receive a one-week free trial. I thought I canceled the membership, but I've found that I have been charged a fee.

Characteristics and problems highlighted

  • Lack of correct knowledge of a subscription
  • Misinterpretation of contract details and a partner to a contract
  • Forgetting to make a request for cancellation within a free trial period or not knowing how to cancel a subscription
  • Contrary to what users thought, the cancellation procedure has not been completed.
  • Services have fallen short of expectations.

Advice for consumers

  • If you have seen free trial ads and want to apply for a subscription, carefully read contract details beforehand.
  • If you want to cancel a subscription, visit the official website of the business concerned to know how to cancel it.
  • Check the name of a partner to a contract, contract details and how to cancel a contract before signing up. Remember the registration information, which will be necessary when making a request for cancellation.
  • Read billing details of your credit card every month and check if there's any payment for a subscription you don't use.
  • In case of trouble or concern, consult your local consumer affairs center right away.