Oregon AG’s Office Puts Magazine Subscription Scam Out of Business

Ellen Rosenblum, Oregon State Attorney General
Ellen Rosenblum, Oregon State Attorney General

We received big news this week from the Oregon Attorney General’s Office when Ellen Rosenblum announced a $3 million settlement with Publisher’s Payment Processing.

According to the AG’s office, the White City company had operated a nationwide scam through a newspaper and magazine subscription ruse.

The numbers are staggering.

Better Business Bureau has received more than 800 complaints against the company within the last 3 years. These include sales and delivery issues as well as problems with service. The most common complaint was billing and collection issues. The volume of complaints, as well as the company’s failure to respond to many of them, have contributed to an F rating for the business.

Consumers told BBB they received bills from the company for magazines they already have subscriptions for, implying it was time for renewal. However, those consumers told us the subscriptions had not expired and they did not originally order from Publisher’s Payment Processing. What’s more, some consumers said the company claimed to have the lowest renewal fee, but they found they could get a better price if they ordered through their magazine’s publisher directly. Many told BBB that Publisher’s Payment Processing would charge a $20 processing fee just to cancel renewals.

The AG’s office says the settlement is not an admission of guilt, but Publisher’s Payment Processing will have to pay up to $500,000 in restitution to Oregon consumers who overpaid or did not receive their magazines. Service fees will also be refunded to Oregonians who have previously received refunds.

“This was a sophisticated operation that generated millions of dollars each year from consumers across the country who thought they were doing business with a reputable magazine or newspaper publisher, but were instead working with a company that made its money by scamming them,” Rosenblum said. “It’s a particular embarrassment to the legitimate Oregon business community when national companies based here don’t play by the rules. The only option was to shut them down—and we have.”

Read the complete Assurance of Voluntary Compliance here.

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