“No risk” publications shouldn’t cost money

Some companies mislead people when they say that a product is “no risk.” That’s what the FTC alleges Progressive Business Publications, a business publication company, did. The FTC says they had telemarketers call businesses, schools, nonprofits, and other organizations to offer samples of their newsletters and books at “no risk.” But they didn’t make clear that, by accepting the samples, your organization got enrolled in an expensive annual subscription.

The FTC says that the tactics the defendants used were tricky. For example, that the telemarketers routinely asked employees their date of birth and used that information as “confirmation” that the person had agreed to the annual subscription. The FTC alleges they also made it difficult for organizations to cancel the unwanted subscription and kept billing them every month. Then, if someone failed to pay, the defendants sent the unpaid debts to another company for collection.

The FTC also sued that debt collection company, alleging that they were aware that many of the organizations had not agreed to the subscription and, therefore, they were collecting debts they knew – or should have known – weren’t valid.

The FTC alleges that the debt collector defendants lied, concealed information, intimidated, and threatened business owners and employees. If you own a business or work at a non-profit organization, be on the alert for bad actors like these. They often target smaller organizations, believing that their threats will intimidate you into paying them. The best defense is an informed workforce.

• Talk to your employees and co-workers about cases like this one and other schemes that target businesses.
• Know your rights when dealing with debt collectors.
• If your business receives unordered products, remember that the law says you can keep them as a gift.
• Tell the FTC if your business is the target of a scheme or deceptive practice at ReportFraud.ftc.gov. 

Note: This blog was updated on October 10, 2024 to update language and correct formatting and hyperlinks.