VSaaS Free Trial Offers Are Misleading - Avigilon, Eagle Eye, Meraki, Rhombus, Verkada
While Verkada's practice of sending free trial users to collections is shocking - and has even impacted an airport - the issue of VSaaS companies offering misleading "free" trials extends beyond Verkada.
Free trials give physical security manufacturers an important competitive advantage, playing a key role in helping bring over customers from other providers. Because of that material benefit, it is a material issue when providers do not prominently disclose key terms and conditions.
A concerning trend in VSaaS free trial advertising is that providers are not clearly disclosing on trial landing pages that customers must either pay the list price or return equipment after the trial period expires.
In this report, we analyze why such advertising can harm consumers, why we believe it conflicts with FTC guidance, and the responses we received from providers.
Executive *******
***** **** ***** *** **** ** not ******* ****** **** ********* **** to ****** ** ******** ********* *** particularly **********, ** ********* *** ****** that ** ********** ****** *** **** will **** **** ****** ** *** software **** *** ***** ****. ** the ** ********* ******** ******'* **** ***** ********, * (******** ****, ***** ***, Meraki, *******, *** *******) **** **** trials **** ** *** ******* ***** all ******** ***********.
** **** ********* *** *** ********* to ******* ******** ** ***** ***** landing ***** (*) *** **** ***** of ********* *** (*) *** **** to ****** ********* ** *** *********. That ***** ****** **** *** ********, which **** ********* *********** ****** ** "placed ** *** **** **** *** immediately **** ** *** [**]," ********** when *** *********** *** ***** "**** information."
******** **** *** ***** *** **** said **** **** ** ****** ***** advertising ** ******* *** ********. ****** and ******* ********* ** *** ******* but *** *** ***** ** **** any *******. ******* *********** ***** *** conditions ** ***** ***** ******* **** but *** *** **** ******* *******.
VSaaS **** ***** *** *** ********** ****, ********* ****** ***********
**** *** *********** **** ***** ********* offering "****" ******, ******* *** * 30-day ******. *** *** ********* ****** the ****** ** ** ******, ****-****, and ** ****.
******** **** ******* **-*** "****-**** ******** ***** *******":
***** *** ******** ******* "** ********** *****":
(***** ************* **** ****, ***** *** added *** ********** ********** ** *** in *** ******* *****: "** *** end ** *** ***** ******, ***** Eye ******** ********* **** ** ******** or *********." *** ***** *** ******* discussion.)
***** ************ * ***** *** *** *****-***** platform ** "** ******":
******* ******* ** ***, "**** ****" *****:
******* ************** ********* *** "*** ******* **** for ** ****," *** "********** *******'* IP ****** ******** ******* ******** * dime":
(***** ************* **** ****, ******* ***** the **********, ********** ** *** *****, that "***** ***** *****" *** **** "you ***'* ** ******* *** *** products **** *** ****** ***** *** end ** *** ***** ******.")
***** *** ******* ******** ** ******* offering **** ****** *** **** ***** with ** **********, ********* ** *******. They ***, *** ********, **** *** trials *** "**-*******-********":
*** *** *** - **** *** exception ** ***** ***, ***** ******* its *********** ***** ** ******* **** IPVM - ***** **** ***** ** no ********** *** ********* ** ** anything ***** ********* *** ***** *********. They *** **** *** ****** *** risk-free *** ******** *** ** *** mention **** ********* **** ** ******** or ****** ********* **** *** ***** period *******.
****'* ************ ********** *** ***** *********. Given *** *********' ******** *****, ********* may ******* ****** **** **** **** only **** ****** ** ******** ***** the ***** ****** **** *** **** no ********** ** ****** *** ********. That's **** ***** ****** ** * VSaaS ******** ******* ** **** ******** a ************, ** **'* *** ** unreasonable ********** ** ****.
Conflicts **** *** ********
**** ******** **** *** *** ** not ****** **** *** ********.
* ***** ** ******** ** ***** from ******* *********, ********* ****** *** Verkada, ** **** ***** *** *** do *** ******* *** ***** ********** to *** *** ********* ** ** is *** ********, *** ********** ** noted ** *** ***** ***** *** conditions. ****** ************ ****:
*********** **** *** ** ******** **** of * ***** ** *********** **** it...should ** ****** ** *** **** **** *** *********** **** ** *** *****, and be sufficiently prominent so that the claim and the disclosure are read ** *** **** ****, without ********* *** ******** ********* **** ** ****** **** ********* *********** [******** *****]
*** *** **** **** **** ******** "is ************ **** *** **** ***********." IPVM's **** ** **** *** ********** for ********* ** *** *** ** return ********* ** ** "********" ********* of *** ***** **** ***** **** is "***********" **** ********* *** ********. Since *** ********** ******** "**** ***********" - *** **** ** ****** *** equipment ***** *** ***** ******* - that ** "************ ****." ** ** not ********** ** ********* *** ***** and ********** ** *** **, ******, as ******* ****. *** *** **** that "*********** **** *** ** ******** part ** * ***** ** *********** from **should *** ** communicated ******* * *********" [emphasis added].
*** ***** ***** **** *** *** guidance ** *** ********** ** **** providers, **** *******, **** ********* **** to ********** ****** **** ***********. *** the *** *** ******* * ******* of ******** ********** **** ** *** sales ** ****** ***** (******* *. ***** ******** ******* ************* *. ********), *** *** *** *** **** not ********* ***** ** ****** "********" to ******* **********.
Include *********** **** ***
****'* ************** ** **** ********* ****** clearly ******** ** ***** ***** ******* pages **** ********* **** *** *** list ***** *** ********* ** **** do *** ****** ** ***** *** trial ******, ******* ** *** *********** and ****** **, ***** **** ******, do ** ***** **** ******:
****** *********** *** ****** ** ***** software *********, *** *** *** * track ****** ** *********** ******* ********* hardware ******, ***. ***** *. ***** *** **********, *** *** ***** ******* * deceptive ****** **** ******* ********* "****" CDs *** ***** ** *** ***** and ********** **** ********* ***** ** charged ** **** *** *** ****** half *** *** ****** *** ****. The *** **** **** **** ********* were ****** *** ********* ***** *** FTC ***.
Provider ********
******** ****, ***** ***, ******, *******, and ******* ********* ** ******** *** comment.
******** **** ********** *** ******** *** said **** **** **** ** ****** their ***** ******* **** ***********:
****** *** **** ********** ******** *** we’ll **** ** *** **** *** to *********** **** *********** **** *** page. ***** **’** ******* **** *** holiday, **** *** **** * *** weeks.
***** ***, ** *****, ********* ** our ******* *** ******* *** ******* page ** ******* *** ********:
****** *** ******** ***. * ***** calling ***, *** *** ****** ** reach ***. ****, * *** ****** to ***** *** * *********.
** ** **** * ******* **** works **** *** *******. ** ** have * ******** **** ********* **** out **** **** ******* *** ***** equipment *** ** ******* ****** **** the ********* **** ** **** *** or *** ********* ******** ** *** end ** *** ***** ******.However, ** *** ******* ***, **** **** ** ******** ** *** ** *** ******* **** ** ********* **** *******.
We **** ******* ** *** ******** ** **** ****** ** *** ******* ** ****. ****** *** ******** **** ** *** *********. Please let me know if you have any questions or concerns. [******** *****]
****** ******* ** ** ***** ***** terms *** ********** *** *** *** agree ** ****** ***** ******* ****:
***** *** *** **** *******. ********* to ***** ******'* ***** ***** *** conditions,failure ** ****** ****** *** ******** *******(*) ****** *** ***** ****** ** ** ******** *** ***** ************ ******** *** ******** ******** *******(*) *** ****** ** ************ ** *******. As a provider of commercial, enterprise-grade networking equipment, Cisco Meraki maintains a process for our trials motion, inclusive of engagement with one of our Sales representatives, as further outlined on our public-facing documentation page available here. Furthermore, as part of the trial process, a potential customer will receive a trial URL which provides the recipient with an overview of the trial as well as the terms and conditions.
******* **** * ******* ********, ********** that ***** *********** *** ******** ** license ***** ******** ** *********** *********:
******* ***** ******* **** *** ********* customers ********** ** ******** ** ************* in *** **** *****. *********** ********* are ******** ******* ***** ** ********* that ******* ***** ********** **** ******* at *** *** ** *** ******* term *** *** ** ****** ******** that **** ** *** **** ** purchase. ** ** *** ************* ****** customers **** ** *** ****** ** purchase *** ******** ***** *** ***** period.
******* **** ******* ** ** ***** trial *****:
** ********* ****** *** **** ***** marketing ********* ** ****** **** *** not **** ***** ** *** ********* but **** ********* **** ********** **** and ***********. *******, **** ** ******** materials **** ****** ** **** **** clear, ** *** ** **** *** necessary ******* ** **** ** ** can.
*** *******, ** ******** *********** *** improvements ** ***** ********* ** ** May ****: (*) ** ********** ********** to *** **** ***** ******* **** (***.*******.***/***/); *** (*) ********** ******** ** our ***** ***** *****, ***** ********* states **** ********* **** ** ******** if **** ** *** ******** ** return ***** ********.
**** ******* **** ***** *** ******** opportunities *** ********* ** ***, *** ultimately ***** **, *** ***** ***** and*** **** *************** ***** ***** ******. *** ***** make ***** **** ** *** ******** does *** ******** ** ****** *** free ***** ********, **** **** **** be ******** *** *********** *** ****** the ***** ** ***** ********.
*********** ** ***** *********** (***** ******* page, ***** ***** ****, *** **** agreement) *** ****** *****.
** *****, **** **** *** ******* that ********* *** ******** *********** ** the ***** *** ********** ********* *** guidance, ***** *** ********** ** *** or ****** ********* ** ******** ** receiving *** ******** ** *** **** trial. ** ********* ******, *******, *** Verkada ** ******** *** ********** ** their ***** ******* ***** **** ***********, and *** ******** **** ** ******* disclose ** **** **** ** ****** their ******* ****.
Verkada *********** ********
* ********** ******* **** ******* ** that*** ******* ***** **** ***** ********** directly ** ************* **** ** *** ******** ******** or ****** ********* ***** *** ***** ends.
***** ** **** *** ******* ** debt ********** ****: ***** *** **** Debt ********** ******** *** (*****), *****'* no ********** *** ********* ** ***** debtors ***** *********** ******** ****** ******* them ** ***********. *** ******* **** an ***** ** ******* ********** **** practice. *** ***** ** ****** ********* to ** ******* ** ********** *********** process *** *********** *******'* ********* **** the ****** *** "**-*******-********."
**** ******* **** ********* ****, ** time, ****** **** ** ******* **** trials ****** ** ***** ********** *** deceptive *********.
*********, ** ********* *** ********* - and ********** ***** ****, ***** *** specific ****** **'** **** *** ***** - ** ** ** ***** ** possible ** **** ***** *********** *** to ******** *** ********* ***** *** obligations ***********.