Arizona Attorney General Mark Brnovich is suing Publishers Service Office, an Arizona-based telemarketer he believes is defrauding consumers with a magazine subscription scam, reports the Phoenix Business Journal.
The company allegedly made 48,000 calls a month to sell magazine subscriptions to consumers, saying it was authorized by publishers to charge customers for new and renewed subscriptions, says the Arizona Daily Independent.The attorney general says such false claims fall under the Arizona Consumer Fraud Act, and his office plans to prosecute.”This office will aggressively investigate telemarketing scams and hold individuals who defraud Arizona consumers responsible,” said Attorney General Mark Brnovich. “We are working with state lawmakers to introduce legislation that will make it more difficult for deceptive telemarketers to operate in Arizona.”According to assistant attorney general Cherie Howie, who is prosecuting the case, Publishers Service Office allegedly bought consumer subscription information and then called those consumers under false pretenses. In addition to using disguised telephone numbers, the company told subscribers they had recorded confirmations of the consumers’ agreement to buy the subscriptions, alleges Howe.Phoenix Business Journal says the lawsuit is asking the court to prohibit Publishers Service Office from violating the law, and it is requesting they pay restitution to consumers, civil penalties, state’s costs, attorney’s fees, and to forfeit any profits made from the alleged acts that violated Arizona law.Earlier this year, a number of states including New York, Oregon, Minnesota, Missouri and Texas filed suits in a nationwide subscription scam involving 44 publications including the New York Times, the Wall Street Journal and Consumer Reports. The publications were not involved in the scams.In those scams, fraudulent renewal notices were sent by an unaffiliated third-party using various fictitious names to magazine and newspaper subscribers, urging them to renew immediately to lock in lower subscription rates. Consumers complained when they were charged but did not receive their subscriptions as promised.Insider Take:These alleged fraudulent practices hurt reputable publishers and trusting consumers, as well as the subscription industry. Publishers and subscription companies can protect themselves and their subscribers by…
- Making their subscription purchase and renewal processes transparent
- Educating their customers about such scams
- Refining internal processes to identify any weak spots
- Being careful about whom they share customer data with
- Choosing outside vendors carefully
- Reporting possible scams to local authorities
~ Dana E. Neuts, Subscription Insider
