Delaware News

ATTORNEY GENERAL DANBERG SETTLES WITH TIME, INC. CONCERNING MARKETING AND BILLING PRACTICES

Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Tuesday, March 21, 2006



(Wilmington, DE): Attorney General Carl C. Danberg announced today that he has joined with 22 other Attorneys General in reaching a settlement with Time, Inc. concerning their marketing and billing practices. As a result of the settlement, Time, Inc. will refund over four million dollars to 108,000 consumers in the 23 participating States. Time will refund approximately $22,000 to five hundred eligible consumers in Delaware.

Time will also pay 4.5 million dollars to the States for costs and fees incurred during the investigation. Delaware will receive $350,000 which will be used to help protect the public against consumer fraud and deceptive trade practices through investigation of such practices, enforcement actions to insure compliance with the law, and consumer education. Delaware is one of seven states that will receive a significant portion of the settlement funds due to the work and efforts expended by the Attorney General’s Consumer Protection Unit to resolve this investigation and reach an agreement. Most of the States that participated in the settlement will receive $75,000.

The States investigated Times automatic renewal offers, billing and collection procedures, and marketing materials. Consumers complained that Time did not adequately inform them that their magazine subscriptions would automatically renew unless cancelled. If consumers did not cancel, Time added the subscription renewal cost to their credit cards or aggressively billed them. Consumers also complained that they received advertisements from Time that appeared to be bills for magazines they had not ordered. As a result of the investigation, the States concluded that Times practices mislead some consumers into paying for unwanted or unordered magazine subscriptions.

Time, Inc. denied the States’ allegations but agreed to clearly and conspicuously disclose to consumers all the material terms for automatic subscription renewals. For the next five years, consumers will have the option of selecting automatic renewal. Before the end of the subscription period, Time will send customers written reminders of the automatic renewal, their right to cancel the subscription, and the procedure for cancellation.

Time will honor all requests to cancel subscriptions as soon as reasonably possible and will not submit unpaid accounts of automatic renewal customers for third party collections. If consumers are charged for magazines they did not order, Time will refund the subscription price. Time also agreed not to mail subscription solicitations to consumers that resemble bills, invoices or statements of accounts due.

Within the next three months, Time will send State-approved refund letters and claim forms directly to eligible consumers. As Time will be identifying eligible consumers from their records, there is no need for consumers to contact the Attorney General’s office to qualify for a refund. The letters will explain the settlement and contain instructions on how to apply for refunds. Consumers should look for an envelope from Time that says “REFUND OFFER ENCLOSED.” If consumers have any questions, they may call the Attorney General’s Office Consumer Protection Unit at 800-220-5424.

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ATTORNEY GENERAL DANBERG SETTLES WITH TIME, INC. CONCERNING MARKETING AND BILLING PRACTICES

Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Tuesday, March 21, 2006



(Wilmington, DE): Attorney General Carl C. Danberg announced today that he has joined with 22 other Attorneys General in reaching a settlement with Time, Inc. concerning their marketing and billing practices. As a result of the settlement, Time, Inc. will refund over four million dollars to 108,000 consumers in the 23 participating States. Time will refund approximately $22,000 to five hundred eligible consumers in Delaware.

Time will also pay 4.5 million dollars to the States for costs and fees incurred during the investigation. Delaware will receive $350,000 which will be used to help protect the public against consumer fraud and deceptive trade practices through investigation of such practices, enforcement actions to insure compliance with the law, and consumer education. Delaware is one of seven states that will receive a significant portion of the settlement funds due to the work and efforts expended by the Attorney General’s Consumer Protection Unit to resolve this investigation and reach an agreement. Most of the States that participated in the settlement will receive $75,000.

The States investigated Times automatic renewal offers, billing and collection procedures, and marketing materials. Consumers complained that Time did not adequately inform them that their magazine subscriptions would automatically renew unless cancelled. If consumers did not cancel, Time added the subscription renewal cost to their credit cards or aggressively billed them. Consumers also complained that they received advertisements from Time that appeared to be bills for magazines they had not ordered. As a result of the investigation, the States concluded that Times practices mislead some consumers into paying for unwanted or unordered magazine subscriptions.

Time, Inc. denied the States’ allegations but agreed to clearly and conspicuously disclose to consumers all the material terms for automatic subscription renewals. For the next five years, consumers will have the option of selecting automatic renewal. Before the end of the subscription period, Time will send customers written reminders of the automatic renewal, their right to cancel the subscription, and the procedure for cancellation.

Time will honor all requests to cancel subscriptions as soon as reasonably possible and will not submit unpaid accounts of automatic renewal customers for third party collections. If consumers are charged for magazines they did not order, Time will refund the subscription price. Time also agreed not to mail subscription solicitations to consumers that resemble bills, invoices or statements of accounts due.

Within the next three months, Time will send State-approved refund letters and claim forms directly to eligible consumers. As Time will be identifying eligible consumers from their records, there is no need for consumers to contact the Attorney General’s office to qualify for a refund. The letters will explain the settlement and contain instructions on how to apply for refunds. Consumers should look for an envelope from Time that says “REFUND OFFER ENCLOSED.” If consumers have any questions, they may call the Attorney General’s Office Consumer Protection Unit at 800-220-5424.

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.