If a telephone caller offers you a "free," "prepaid," or "special
deal" on magazine subscriptions, listen carefully before you answer.
A hurried "yes" to the caller may obligate you to years of monthly
payments for magazines you may not really want or could purchase
elsewhere for less. In some states, once you orally agree to receive
these magazines, you may be legally obligated to pay for them. When
buying magazines over the phone, you do not have the advantage or
protection of first seeing the written terms of the sales agreement.
Of course, thousands of consumers buy magazine subscriptions from
legitimate salespeople over the telephone every year. Yet, according
to the Federal Trade Commission (FTC), some consumers are tricked by
unscrupulous salespeople into paying hundreds of dollars for multi-
year subscriptions. Fraudulent sellers make presentations so slick
that many consumers are unaware they have purchased magazines until
they receive the written agreement. The information in this brochure
may help you avoid becoming entangled in a magazine subscription
contract you do not want and which is difficult to escape.
How To Recognize Deceptive Sales Techniques
Sales techniques for these magazine subscriptions vary.
Sometimes, instead of an initial phone call, you may receive a
postcard that mentions nothing about magazine subscriptions. The
postcard may ask you to call a telephone number about a contest,
prize, or sweepstakes entry. If you call, you may be told about
contest prizes or drawing dates. However, you soon may find that the
telephone conversation turns into a sales talk about buying magazine
Listed below are some other questionable sales tactics deceptive
telephone salespeople use.
* They may avoid identifying themselves as magazine subscription
salespeople or may fail to give you their name or that of their
company. They may imply that they represent major credit card
companies or magazine publishers or that their purpose in calling is
something other than selling magazine subscriptions.
* They may encourage you to make purchases without giving you total
costs. For example, they may offer you magazines for just a few
dollars a week. This may sound like a bargain until you realize that
you could be paying hundreds of dollars for subscriptions that
regularly may sell for less.
* They may say you will be purchasing multiple-year subscriptions
for a package of magazines, when, in fact, many of these
subscriptions may be sent to you for a much shorter time.
* They may say they are "approved" or "regulated" by the federal,
state, or local government; in fact, no governmental body actually
approves magazine-selling operations.
What To Do If You Get a Telephone Call From a Magazine
You should listen carefully to the initial telephone sales
presentation. If you are not interested in the offer, you simply may
want to reject the offer and hang up the phone. If you are interested
-- but busy -- when the call comes, you might ask the caller to
contact you when you can focus more carefully on the sales offer.
Some sellers may ask to tape your telephone conversation with them,
saying it is for your protection. In reality, they might use this
recording to "prove" you agreed to buy the magazines, selected a
method of payment, and understood all the terms of the agreement.
Remember, your verbal agreement to buy may become an immediate legal
contract in some states.
The best way to protect yourself from unscrupulous sales
presentations is to be suspicious when anyone tries to sell you a
"bargain" or give you something "free" over the phone. Ask questions
so you will have adequate information about what is being sold and
the total costs involved. If your questions are not being answered
completely, dismiss the caller.
Listed below are some questions to ask and tips to follow when you
receive a telephone sales presentation regarding magazines.
* Ask callers for their name, and the name, address, and phone
number of the company they represent. Ask whether they are
salespersons and what magazines they are selling. You may want to
contact the company for verification before you place an order.
* Ask for the total yearly cost of each magazine and for the whole
package. Decide if this represents a real bargain over the regular
magazine subscription prices you can obtain elsewhere.
* Ask to receive a written copy of the sales terms offered over the
telephone before you agree to buy anything. Then, read the sales
agreement carefully and make sure you understand what you will be
receiving and what it will cost.
* Do not give your credit card number over the phone unless you
initiate the call or you are familiar with the company. If you give
your credit card number over the phone to an unknown salesperson for
"verification" or "computer purposes," that person may use it
improperly to charge your account for unwanted magazine subscriptions
or other purchases.
* If you initially ordered magazines in response to a telephone
solicitation, you may be called again. Although you may think you
are being called to find out if you are satisfied with your order,
the caller may be trying to sell you additional subscriptions or to
renew existing ones. Listen carefully to subscription offers and make
sure you understand the terms.
* Be cautious about giving your bank account number or sending your
signature to telemarketers. Fraudulent sellers sometimes say they
need such identification to send you a "gift." However, they may use
such a deceptive tactic only to get your bank account number and
signature, and once they have both, they can debit your checking
How To Cancel Magazine Subscriptions Ordered by Telephone
Although there is no federal law governing cancellation of telephone
agreements, certain local and state laws require sellers to provide a
cancellation period for telephone sales. But once you agree to buy
magazine subscriptions over the phone, you cannot simply call the
company to cancel your order if you change your mind. Magazine
subscription companies do not honor oral cancellations. Where
cancellation notices are honored, they must be in writing and occur
within a limited time period. If you want to cancel magazine
subscriptions you have purchased over the telephone, you will need to
take following steps.
* Watch for the arrival of your sales agreement, which may come in a
plain or "junk mail" type envelope. Look for the provision in the
agreement that allows you to cancel your subscription; generally it
is within three days of receipt. The cancellation notice may be
difficult to find. Often it is attached to an inside page of multiple
copies of the sales agreement.
* Sign and return the cancellation notice to the proper address,
which also may be difficult to find because several addresses may be
listed. Send the cancellation by certified or registered mail to be
able to provide proof of your mailing date. If you are unable to send
the cancellation notice by certified mail, photocopy the signed and
dated notice and keep it for your records.
* When you send the cancellation form, immediately contact your bank
or credit card company to stop any unauthorized payments.
* If your contract is beyond the cancellation period and you have
paid in full, the magazine company may not be required to refund your
money if you want to cancel your subscription. If you fail to meet
the contract terms regarding payment(s), you may receive dunning
notices and calls from collection agencies, or you may be threatened
with legal action and a bad credit rating.
Where You Can Go For Help
If you ordered magazine subscriptions by telephone and believe you
have been victimized, notify your state Attorney General or local
consumer protection office. You also may file a complaint with the
FTC. Write: Correspondence Branch, Federal Trade Commission,
Washington, D.C. 20580. Although the FTC does not intervene in
individual disputes, the information you provide may indicate a
pattern of possible law violations requiring action by the
Commission. If you have been contacted about paying for magazine
subscriptions you did not authorize, you may want to get the FTC
brochures Fair Credit Billing and Fair Debt Collection to learn your
legal rights. For a free copy of these publications, write:
Public Reference, Federal Trade Commission, Washington, D.C.
Facts for Consumers from the Federal Trade Commission
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