Magazine renewal scams have gotten a lot more sophisticated

CONSUMER FORUM 

Posted July 18, 2016, at 6:30 a.m.

A consumer wrote to Northeast CONTACT recently, saying she was concerned about a series of offers to extend some of her magazine subscriptions.

What tripped her radar was a discrepancy in expiration dates; one notice said a certain magazine subscription ended in September, another indicated November. Return envelopes for two magazines both were addressed to the same post office box in Texas.

We can’t say with certainty that either offer was bogus. All we can say is that anyone who is asked to renew well before an expiration date should examine the offer closely.

ConsumerAffairs.com has warned subscribers about phony renewal schemes. The perpetrators use materials that look real, but the ridiculously low prices are a tipoff that they’re often schemes to separate people from their money.

The fakers operate under so many names that finding and stopping them usually is a challenge.

In March 2015 the attorneys general of New York, Minnesota, Missouri, Oregon and Texas sued a network of companies claiming to offer “one of the lowest available rates.” Prosecutors contended the actual charges were about twice those of legitimate subscriptions.

Why do some companies offer below-cost rates?

Simply because they want your credit card number so they can run up charges you haven’t authorized. You lose your money and don’t get your renewal.

In May of this year, the Federal Trade Commission filed a complaint against several individuals and companies that it said were deceiving consumers. The companies allegedly sent renewal notices for some 375 newspapers — none of which had consented — to people claiming to offer bargain rates on subscriptions.

In fact, the FTC found that those prices were a lot higher than regular rates. The agency is trying to get at least partial refunds for affected consumers.

Newsmagazine The Nation published the names of two dozen companies that it said were making unauthorized subscription offers. Read the list at thenation.com/renewalscam.

The magazine industry has long opposed efforts to change what it calls “advance consent,” under which subscriptions can be automatically extended unless the subscriber opts out. This is what the FTC calls a “negative option.” The agency looked at strengthening its longstanding rule on negative option but decided two years ago to leave it as is.

In doing so, the FTC signaled it wants the industry to police itself. You can read the guidelines that one trade group advises its members to follow at auditedmedia.com/resources/bylaws-and-rules/chapter-f-consumer-magazines/article-8.

Renewal services are good, bad and in-between. Some may offer real deals, while others say you’ll save while you’ll actually pay more. Bottom line with most of them is this: You’ll probably get your magazine, but be ready for any “introductory offers” never to return again.

Many consumers are abandoning print subscriptions and reading magazines online, a free service of MARVEL! a statewide service on any Maine computer. Bangor Public Library patrons can use Flipster to read magazines on all their devices.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

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