Dick Smith warns over misleading subscription fees claim

The Commission said Dick Smith’s website uses a pre-selected checkbox to add the First subscription trial to the shopping carts of all eligible consumers between July 3 and September 19, 2023, unless consumers proactively opt out.

Those who complained to the commission admitted they did not realize they had signed up until they received the accusation from Dick Smith after the hearing concluded two weeks later.

A Kogan Australia spokesman said they did not accept the views outlined by the commission but were committed to making continuous improvements to the shopping experience.

“The Trade Commission letter refers to a webshop payment process that was in place for a limited time more than a year ago.

“The customer experience in question had already begun to change before the commission began the process and had been changed before the commission’s findings.”

After the Commerce Commission notified Dick Smith of the issue, the company discontinued the use of pre-selected domains for its subscription service and provided affected customers with refunds upon request.

The Commission believed that the conduct likely breached the Fair Trading Act, but stated that only a court could determine whether a breach had occurred.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.