Keith Norris, Independent Consultant to the Marketing Association, cautions marketers against using pre-ticked boxes for subscriptions on websites, noting that the Commerce Commission is closely scrutinizing this practice. He highlights a recent warning issued to Kogan Australia (Dick Smith) for potentially misleading consumers by pre-selecting subscription options. Norris advises marketers to prioritize transparency, as pre-ticked boxes do not constitute genuine consent under anti-spam regulations.

Do you use tick boxes on your website or in your digital marketing? If you answered “yes” you should be aware that consumers get confused by them and the Commerce Commission is looking closely at this practice. Tick boxes are especially confusing if you pre-tick or pre-populate them to automatically sign consumers to receive digital communications or subscriptions.

The Commerce Commission has issued a warning to Kogan Australia Pty Limited, commonly known as Dick Smith, for likely misleading consumers, as their website automatically signed customers up for a $149 membership subscription.

Commerce Commission Competition, Fair Trading, and Credit General Manager, Vanessa Horne says consumers are focused on their intended purchase when shopping online and should not have to watch out for being automatically signed up to a subscription through a pre-selected tick box.

“Businesses have an obligation under the Fair Trading Act to not mislead consumers, including online shoppers,” Ms Horne says.

“The pre-selection of the “FIRST” membership was not obvious on Dick Smith’s website, which meant it was unclear to consumers that they were signing up to a subscription.

“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.

“The Commission is encouraging consumers to keep a look out for sneaky subscriptions when shopping online. As we head into the holiday shopping season, it’s important to take a moment to check exactly what’s in your cart before purchasing.

“If you think a business is being misleading about online purchases or subscriptions, please let the Commission know on our website,” Ms Horne says.

I have always warned Marketing Association members to avoid using pre-ticked boxes to get consumers to sign up to receive emails because it is not best practice. Good marketing is all about open and transparent communications and the Government anti-spam unit will not accept pre-ticked boxes as ’consent’ to receive marketing offers or communications.

Source: Keith Norris, November 2024