Lesson 7 of 7

Subscriptions, renewals and your rights in New Zealand

Most paid security software is sold as a subscription. The software itself is only half of what you are agreeing to; the other half is the terms. This final lesson explains what to read before you pay, how to stay in control of renewals, and where New Zealand consumer law fits in.

What you are agreeing to when you subscribe

When you buy a software subscription, you are usually agreeing to pay a set amount for a set period, often a year, in return for the right to use the product and receive updates during that time. Many subscriptions are set to renew automatically at the end of the period unless you turn renewal off.

Automatic renewal is not wrong in itself. For security software it has a genuine benefit, because protection does not lapse while you are busy. The important thing is that you know it is happening, know what it will cost, and know how to stop it if you want to.

Six things to find before you pay

All of these should be available on the vendor's website or in the checkout pages. If you cannot find one of them, that is worth noting in itself.

1. The price for the first term, in NZD, including GST if it applies. Some overseas vendors show prices in other currencies; your bank may add a fee for converting.
2. The price on renewal. Introductory prices for the first year are common. The renewal price is often different, and it is what you will pay in later years.
3. Whether the subscription renews automatically, and whether you will be reminded before it does.
4. How to turn off automatic renewal. Look for whether this can be done online in your account, or only by contacting the vendor.
5. The refund policy. Some vendors offer a refund within a stated period after purchase or renewal. Note the period and how to ask.
6. Who you are buying from, and where they are. The seller may be the software company itself, a reseller, or an app store. This affects who you contact if something goes wrong.

Managing automatic renewal

A little organisation at the start saves a lot of trouble a year later.

• Save the purchase confirmation email in a folder you will be able to find.
• Put a reminder in your calendar a few weeks before the renewal date.
• At that reminder, ask yourself whether you still need the product, using the questions from lesson three.
• If you decide not to continue, turn off renewal in your account and save the confirmation.
• If you subscribed through the Apple App Store or Google Play, manage the subscription in the store's settings rather than in the app itself.

Plans that cover several devices or people

Many subscriptions cover a set number of devices, and some are sold as family plans. These can be good value if you would otherwise buy several separate subscriptions, but only if you actually install the product on the devices it covers. Before buying a multi-device plan, count the devices from your list in lesson three that you really intend to use it on.

It also helps to agree who in the household holds the account. That person will receive renewal notices and be able to cancel. If the account belongs to someone who later moves out, transfer or cancel it deliberately rather than letting it continue to renew in the background.

Where New Zealand consumer law fits in

This section is general information, not legal advice. For your own situation, the organisations linked here can help.

The Fair Trading Act 1986

The Fair Trading Act 1986 prohibits businesses from engaging in misleading or deceptive conduct in trade, and from making false or misleading representations about goods and services. It also contains rules about unfair terms in standard form consumer contracts. The Commerce Commission enforces the Act and publishes guidance about it for consumers and businesses.

The Consumer Guarantees Act 1993

The Consumer Guarantees Act 1993 sets out guarantees that apply when a business supplies goods or services to a consumer, and limits a business's ability to contract out of them when the purchase is for personal or household use. How those guarantees apply to a particular software purchase depends on the circumstances. Consumer Protection, the consumer information service of the Ministry of Business, Innovation and Employment, explains the Act in plain language and is a sensible place to start.

Buying from an overseas business

Many software companies are based outside New Zealand. Buying from an overseas seller can make it harder in practice to resolve a dispute, even where you have rights on paper. Before buying, it helps to check whether the vendor has a New Zealand presence or a clear complaints process, and to pay with a method that gives you some protection, such as a credit card.

If something goes wrong

Most problems with a subscription are resolved by contacting the seller. If that does not work, there are further steps.

1. Contact the seller in writing. Email or use the vendor's support form. Say clearly what happened, what you want, and include your order number. Keep a copy.
2. Ask your bank or card issuer about a dispute if you were charged for something you cancelled, or charged without agreeing. Card schemes have dispute processes, often called chargebacks, and your bank can explain whether one applies and what time limits exist.
3. Look up your rights on Consumer Protection, which also explains the options available for resolving disputes.
4. Tell the Commerce Commission if you think a business has misled consumers. The Commerce Commission accepts complaints, though it does not usually act for individuals in private disputes.

Privacy and security software

Security software can see a great deal of what happens on your device, and some products send information about files and websites to the vendor to help detect threats. The vendor's privacy policy should explain what is collected and why. If you have a concern about how a business has handled your personal information, the Office of the Privacy Commissioner explains your rights under the Privacy Act 2020, including the right to ask an organisation for the personal information it holds about you.

Looking back over the course

You have now worked through all seven lessons. In brief: antivirus looks for harmful software and is one layer among several; your device very likely already has some; whether to add a product depends on your devices, your household and the extras you want; installing and removing software carefully avoids most technical trouble; fake alerts imitate security software, so it pays to know how real messages behave; and a subscription is an agreement whose terms deserve as much attention as its features.