I recently registered for a business summit that includes a year’s subscription to a national business publication. If I don’t want to receive this magazine, I need to send a copy of my registration e-mail to a third-party fulfillment company in order to get $12 refunded. What would you do? What do you think of this negative optioning approach?
Some background to my gut response to this:
Several years ago, anyone who subscribed to Rogers Cable in Ontario, Canada, was vulnerable to negative optioning by the monopoly cable supplier. According to Toronto Star consumer advocate and writer, Ellen Roseman, “Rogers Cable tried to get customers to pay for new specialty TV channels in 1995, unless they said they didn’t want them. There was a huge uproar and Rogers backed down.”
Consumers were definitely incensed. So much so, that in 2005, the Ontario government passed a law outlawing negative option billing.
A similar experience happened more recently to Bigsnit blogger, Robert Ouimet, who was charged $59 USD on his Amex statement for a renewing Classmates.com subscription he thought would expire after the first two years. Even when he tried to get American Express Canada to remove the charges, “American Express sides with the vendor, leaving the customer hanging in the cold,” he says.
So, now back to my dilemma. Many people wouldn’t bother to take the time to mail in a receipt to get back $12. But, in this economy, maybe there’s a greater incentive now. I sent it in on principle. As Lewis Green always says, marketers today need to be authentic and trustworthy, and negative option marketing just doesn’t fall into that category. In fact, I think it besmirched the summit host’s brand.
What do you think? Would you have requested a refund or just shrugged it off?
Related posts:
- A Real Groundswell Is Brewing in Canada over iPhone Launch
- Ignore ‘em or Embrace ‘em? How to Handle Negative Blog Comments
- SEM Conceives Arch-Nemesis: Negative SEO
- How Should Your Company Handle Negative Blog Comments?
- Amex Brings American Idol Concept to Social Responsibility
Tags: American Express, Ellen Roseman, Lewis Green, negative option marketing, Robert Ouimet, Rogers Cable, Toronto Star
Definitely go for a refund.
My experience with free subscriptions has been miserable. They all appear to include an “auto renewal” option, and the cancellation process is typically very onerous in terms of time or effort.
These offers lower my perception of the company, conference, credit card that facilitates them. The third party marketers have their own image but the premier people engaging me should not put them in front of me.
Evil. That’s really all there is to say about the negative option. In effect, it’s a form of extortion.
I can’t help but think that as tempting as it may be for some enterprises, the negative option can’t be good for long term business. Could there be a worse way of initiating a relationship with a customer?
Thanks, NW Guy and Jonathan. If this happened to you, would you show the summit host this blog post?
I would try to avoid that whole situation. Negative optioning is one big negative all around. Seems very evil & underhanded.
I’d definitely show the summit host this blog.
Thanks, Emily. I wonder how they will take it.
Wow. How is that even marketing to do nothing but piss people off? That tactic is about as old school (in the negative sense) as the proverbial sales guy in the polyester suit.
Think of the sales guy on WKRP in Cincinnati but sleazier…
Thanks, Neil. What do you really think?
I appreciate your weighing in on this one. I couldn’t decide whether to share it with the organization that sparked my initial reaction. But, for better or worse, if it were me on their side of the fence, I’d want to know. After all, aren’t we in business for our customers? This outfit has an excellent reputation and I wouldn’t want to see it damaged.
Quick follow up.
After a lot of back and forth with Amex, they did eventually ‘open a case’ and reversed the charges. Apparently no-one at Classmates was able to provide any proof that I had agreed to recurring charges.
So, I must credit Amex with FINALLY doing what’s right, though it was like pulling teeth.