FTC Lawsuit Targets Newspaper Subscription Scams

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Last week, the Federal Trade Commission filed a newspaper subscription scam lawsuit against dozens of companies who allegedly deceive consumers by sending out mass mailings disguised as subscription notices.

The FTC lawsuit states that the defendants participate in a nationwide campaign that deceives consumers in order to solicit newspaper subscriptions and renewals. These companies reportedly use mass mailings that look like subscription notices that are authorized by the newspaper publishers to obtain and renew subscriptions. However, many newspaper publishers have not authorized the defendants to solicit subscriptions or accept payments from customers.

“Defendants have received multiple ‘cease and desist’ letters directing them to stop taking unauthorized subscription orders for more than 375 newspapers,” the FTC newspaper subscription scam lawsuit states. “Defendants’ practices have prompted thousands of consumer complaints.”

“Many consumers experienced delivery problems or delays or they did not receive the requested newspapers at all,” the FTC lawsuit continues. “Some consumers paid twice for the same subscription and some complained about what appeared to be substantially inflated renewal rates.”

Some consumers who attempted to cancel their subscriptions were unsuccessful or received only a partial refund, the FTC alleges. While other consumers have reported that they were finally able to receive a refund, but only after much effort.

According to the FTC subscription scam lawsuit, the defendants all operate out of Oregon and use a variety of official-sounding business names. A company called Liberty Publishers Services reportedly operates under 39 d/b/a business names. Express Publishers Service reportedly uses 23 d/b/a business names.

The mass mailings reportedly promise they are offering “one of the lowest rates” for newspaper subscription or renewal. However, the FTC states that the quoted rate is typically higher than the rate charged by the newspaper publisher.

Many consumers received the notices and paid the requested amount because they believed the notice was authentic. “Only in the fine print on the reverse of the mailers do Defendants disclose that they “do not necessarily have a direct relationship with the publishers or publications that [they] offer,” the FTC states. However, many consumers did not read the fine print and believed the language on the front of the subscription or renewal form.

Despite receiving numerous complaints from consumers and cease and desist letters from newspaper publishers, the defendants allegedly continue to mail, process and submit the subscription and renewal orders. They have also reportedly created new shell corporations in attempt to hide the source of the orders.

The FTC is seeking injunctive relief to bar the defendants from continuing to engage in the newspaper subscription scam. The agency is also seeking remedies for consumers who were harmed by the subscription scam, which could include reformation of contracts, restitution, refunds and disgorgement of ill-gotten money.

The FTC is represented by Krista K. Bush, Laura M. Solis, Richard McKewen and Connor Shively.

The FTC Newspaper Subscription Scam Lawsuit is Federal Trade Commission v. Adept Management Inc., et al., Case No. 1:16-cv-00720, in the U.S. District Court for the District of Oregon, Medford Division.