A retroactive price change is a change in price that is applied to past transactions. For example, if your cable company raised its prices, and then applied the new prices to your bill for the previous month, that would be a retroactive price change.
Why do companies make retroactive price changes?There are a few reasons why companies might make retroactive price changes. One reason is that they may need to raise prices in order to cover rising costs. For example, if the cost of fuel goes up, a company that delivers goods might need to raise its prices in order to cover the increased cost of transportation. Another reason why companies might make retroactive price changes is that they may want to discourage customers from canceling their subscriptions. For example, if a company knows that a customer is on the fence about canceling their subscription, they might raise the price of the subscription in the hopes that the customer will decide to keep it rather than pay the higher price.
Are retroactive price changes legal?In the United States, there are no federal laws that specifically prohibit retroactive price changes. However, there are some state laws that do prohibit them. For example, in California, it is illegal for a company to make a retroactive price change unless the customer has agreed to it in writing.
What can you do if you are faced with a retroactive price change?If you are faced with a retroactive price change, there are a few things you can do. First, you can contact the company and ask them to explain the change. You may be able to negotiate a lower price or get out of your contract without penalty.If the company is unwilling to work with you, you can file a complaint with your state’s consumer protection agency. You may also be able to take the company to court.It is important to remember that you have rights as a consumer. If you are faced with a retroactive price change, do not hesitate to stand up for yourself.
Wiki Hyphen Website | Updates 14th May 2023 | What is a retroactive price change? https://www-wiki.com/what-is-a-retroactive-price-change