Dick Smith warned over alleged misleading subscription charges

Dick Smith owner Kogan Australia has been issued a formal warning by the Commerce Commission after allegedly misleading the majority of 241 consumers into signing up for a subscription without them knowing. According to the allegations, Dick Smith’s online store automatically signed up consumers for a monthly or yearly “First” membership subscription, with a maximum value of $149 a year. Commerce Commission fair trading manager Vanessa Horne said consumers are focused on what is already in their cart when making a purchase, not added extras.

She said it was not obvious to consumers that it was pre-selected, which was misleading. “To avoid automatically subscribing, a customer would have to first recognise the tick box had been selected, which meant they were signed up, and then actively de-select the option,” Horne said..