This article, Magazine Renewals are Often Not a Favor, was written by Russ Van Arsdale of Northeast CONTACT, and published on their blog as well as the Bangor Daily News Consumer Forum.
It might be called making money hand over fist.
It’s what some companies try to do while making believe they’re doing you a favor. As a result of that “favor,” you may end up with a pile of magazines you didn’t want.
The companies set themselves up as renewal services, mailing reminders to subscribers and offering to extend their current subscriptions. The prices they charge are anything but a bargain. A recent mailing to our household offered two years of Harper’s Magazine for $69.95, slightly higher than the magazine’s advertised sub-scription price of $26.97.
All of which is not news to the people at Harper’s. An alert in the magazine’s April edition says it is aware of several companies that solicit renewals without the magazine’s approval.
Harper’s went on to say that it has tried to track down Magazine Billing Services, Publishers Processing Services Inc., American Consumer Publish Association, Publisher’s Periodical Service, Magazine Billing Network and Crown Marketing. Most of those efforts have been unsuccessful.
The alert advises readers who are unsure whether a renewal notice is authentic to call them directly or visit their website. That way, readers can avoid any unauthorized “middlemen” and the huge markups that go with them.
The shady renewal companies don’t stop at offering renewals at inflated prices. Once they get a positive response, they’ll likely try to get you to renew another subscription (again, at a hefty markup)…
As with most mass mailings, these are numbers games. If a hundred low-cost mailings yield one high-cost renewal, the sender’s making money. Mailing lists are bought and sold daily, pouring fodder into the mailers’ databases. So read carefully, compare prices and buy only what you really want.
Visit the Federal Trade Commission website and under the Bureau of Consumer Protection tab, search “magazine subscription” for useful tips
Are you worried that someone you love is going to fall victim to some sort of fraud or scam? Well, Maine Office of Securities, AARP/Maine and the Maine Attorney General’s office are working together to start a program addressing one problem area.
The coalition is proposing a “Free Lunch Seminar Monitoring” training program. If you’re a person of a certain age, you know what they’re talking about: countless offers of a free lunch or dinner if you’ll sit through a financial planning or investment presentation. The problem is that seniors are increasingly the targets of these free seminars, some of which go on to use repeated phone calls and other strong-arm tactics to force seniors into risky investments.
It's OK to attend a free lunch, but make sure the only thing that gets cleaned out is your empty plate, not your investment account!
This press release from the Securities and Exchange Commission has some alarming statistics about these “free lunch” programs.
Want to learn how to be a Free Lunch Seminar Monitor? Volunteers will be trained to monitor the “free lunch” offerings at training sessions planned around the state, using a question sheet. Training sessions are free and open to all, but advance registration is required. Three sessions are planned, with the first session scheduled to take place at AARP’s Portland office on February 24, 2010.
More information about getting involved is available from the Office of Securities by calling 1-877-624-8551. AARP has additional details in articles about the national Free Lunch Seminar Monitoring program.
