Reading The Fine Print Before You Sign
READING THE FINE PRINT:
17 Phrases To Understand Before You Sign
By D. S. Mitchell
Red Flags
Most consumer contracts and service agreements contain a lot of legaleeze. Best selling author Bob Sullivan warns consumers to read the fine print. Red flags should go up when you see any of the following common phrases in a contract you are about to sign.
1.) “Free” We all know nothing is free. You have probably heard the expression, “if you aren’t paying for the product-then you are the product.” The meaning of course is that your personal information is probably being sold to advertisers. OR, maybe it is free now, but you may be committing to pay later. WHICH, takes us to:
2.) “Free Trial” You often see phrases like this one, “Free 30 day trial.” (We won’t charge your card until the end of the trial period.) Do you really expect to remember to cancel on the 29th day? Corporations have spent millions of dollars to learn that the average consumer will not cancel before the end of the 30 day period.
3.) “Reduced Price for Six Months” This one falls in the same category as ‘introductory price offer’ and ‘free trial’ scam. $59.00 a month for six months may sound great in January, but if it is going up to $150.00 in June is it actually a good deal? You are the only one that can decide that. And again, will you remember to cancel before July 1st if you decide that the high monthly price after the six month period isn’t worth it?
4.) “Automatic Renewal” This means you keep paying even if you don’t want or need the service any longer. Keep your eye open for such commitments found in the fine print. And, be sure to keep an eye on your checking account because you can cancel the renewal charges if you find them.
5.) “Fees” Before you sign on the dotted line make sure that you understand the late fee charges that can be assessed to your account. Obviously, those fees should not be unreasonable.
6.) “Opt Out” The phrase means companies can use your data however they wish unless you take an important step—you “opt out”—to stop it. These guys and their lawyers know that most people just accept the default “opt in” setting. If you go with the product or service, “opt out” if you don’t want them to share, or sell your information.
7.) “Third Party” This can mean you and your data is being sold to other (3rd) parties. Unsolicited offers will be directed to you, many will be “free” offers. In fact, many free offers are just bait for third party marketing devices.
8.) “Learn About You” I know, it sounds as if the company is interested in what you might have to say, when actually they are combining what you tell them with outside data in order to learn more about your shopping interests so they can target you with precision targeted advertising.
9.) “Restocking fee” Often sales personnel will encourage a consumer to take a product and try it, promising that you can bring it back for a refund if you don’t just love it. Restocking fees can be steep–15% for electronics for example. Ross Stores for example is notorious for paying pennies in refunds, due to their outrageous re-stocking charges.
10.) “Extended Warranty” It seems everyone is trying to add extended warranties to their products. Often extended warranties are hidden in the consumer’s monthly payment program. The value of such warranties is up for debate. If you chose to buy one you have the right to be fully informed as to the cost, and how they intend to collect the warranty fee.
11.) “Not Covered” Most warranties are full of exclusions that can lead to consumer disappointment. Auto warranties usually exclude “wear” products, such as brake pads.
12.) “Void the Warranty” Consumers often break the terms of their warranties which lead to the warranty being “void,” such as getting an electronic device wet.
13.) “Mandatory Arbitration” If your purchase injures you, or you feel misled, and if you see the phrase ‘mandatory arbitration’ on your warranty documents you cannot sue, but must submit to arbitration.
14.) “Class Action Waiver” When you are ripped off for a small amount of money, it makes no sense to sue the company. However, you could join with others in a class action suit, which combines the voice of many in a single lawsuit. Many contracts force consumers to waive their right to enter in class action suits, watch for that language.
15.) “Liquidated Damages” If a consumer does manage to win a courtroom battle, contract phrases such as ‘liquidated damages’ attempts to cap potential damages any such win might give a consumer.
16.) “Limitations for Suit” Such language in your contract may shorten your time frame to bring a lawsuit. Check terms and conditions to understand any abbreviation of time period.
17.) “Hold Harmless and Indemnify us” These words in a contract can give the corporation the power to force a consumer (or worker) to pay the company’s legal fees in the case of a lawsuit.
Bob Sullivan
Bob Sullivan is the author of New York Times bestsellers, “Stop Getting Ripped Off” and “Gotcha Capitalism.” If you are interested in finding out more about how to protect yourself in the world of consumer contracts and service agreements look for Bob’s books.
