Dick Smith customers angry at pre-ticked membership, $149 fee

The Commerce Commission has contacted online retailer Dick Smith after receiving 182 inquiries about its FIRST membership programme.

FIRST is a subscription offering benefits such as free shipping and exclusive pricing.

“Given the volume of inquiries we have received, we have made initial contact with Dick Smith” said Kirsten Mannix, general manager of Fair Trading. “We are currently assessing these inquiries and considering whether to open an investigation”.

Fair Go heard from a number of viewers who were angry at inadvertently joining the membership programme after purchasing an item from Dick Smith.

This was due to a pre-selected box on the Dick Smith website which signed customers up to a 14 day free trial of FIRST, at the end of that fortnight they are charged the $149 annual membership fee

Molly Brady was surprised to see the $149 extra charge on her credit card two weeks after she’d bought a $24 watch charger.

“I was upset, $149, it’s a lot of money," Brady said.

“I either thought that I’d accidentally bought something and nothing had shown up, or I thought it was a scam.”

Another customer, Lynley Coventry was caught out too, stating, “I wouldn't have chosen that, not at all, not for $149.”

Dick Smith said customers are told about the benefits and costs of the FIRST membership on its website.

A spokesman said: “Before purchase the customer can choose how they’d like to proceed, if they select to pay for shipping or the non-FIRST exclusive price they will be opted out of the FIRST membership trial.”

Members can all also cancel their membership during the trial period and Dick Smith emails reminders to customers at the start of the trial and three days before the trial ending.

Dick Smith also said in a statement that it was assisting the Commerce Commission with its inquiry and that customers can cancel their remaining FIRST membership at any point and secure a refund.

Brady and Coventry have both received refunds but Coventry said it’s put her off shopping online, “I'm not using my credit card much, it's just made me very wary.”