Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES NEWS: Florida Attorney General announces settlement with legal publishers over automatic subscription renewals, (Feb 6, 2014)
Organizations Mentioned:CCH, Inc. | Thomson Reuters Tax and Accounting Inc. | West Publishing Corp. | West Publishing Corporation
By Linda O’Brien, J.D., LL.M.
Florida Attorney General Pamela Bondi announced on February 4 that the Office of the Attorney General (OAG) has reached a settlement with West Publishing Corporation and Thomson Reuters Tax and Accounting Inc. after an investigation into the advertising and business practices of the companies’ automatic subscription renewals. The companies have agreed to provide restitution of up to $6 million to consumers who received law books, newsletters, and other publications that the consumers had not intended to order.
Automatic subscription renewals and automatic product shipments are known as negative option plans. In notifications to be sent to consumers, consumers must be told clearly about the terms of such plans and agree to the terms in order for plans to be lawful under Florida’s Deceptive and Unfair Trade Practices Act, according to the state attorney general’s office.
The Assurance of Voluntary Compliance entered into by the companies resolves allegations that the companies placed customers into automatic subscription renewals and automated shipment plans for their publications without adequate disclosures. The publications were distributed in print, CD and electronic book (e-book) formats Refunds will be offered to all Florida customers who, after January 31, 2010, unknowingly paid for certain publications that were automatically shipped or for subscriptions that were automatically renewed. The companies will send claim forms to all customers who are eligible to request refunds.
The two publishing companies have also agreed to modify their business practices to ensure that automatic shipment plans and automatic renewal of subscriptions are put in place only after all appropriate disclosures have been provided to customers and the customers have provided affirmative consent to the terms.
This is the state’s third settlement with a large legal publishing company. Earlier agreements were reached with Matthew Bender and Company, Inc. in April 2009, and CCH Incorporated in February 2013, according to the announcement.
Companies: West Publishing Corp.; Thomson Reuters Tax and Accounting Inc.
News: StateUnfairTradePractices ConsumerProtection FloridaNews