Press Release
FOR IMMEDIATE RELEASE
Date: 04/11/06

Contact person(s):

Media Coordinator, Donna Edwards - 565-3099 Media Spokesperson, Assistant District Attorney Larry Scoufos

Santa Rosa, Sonoma County, California

$500,000 SETTLEMENT IN CONSUMER PROTECTION ACTION
AGAINST INTERNATIONAL MAGAZINE SERVICE

Attorney General Bill Lockyer and Sonoma County District Attorney Stephan R. Passalacqua today announced their offices jointly obtained a $500,000-plus settlement in a consumer protection lawsuit against Santa Rosa-based International Magazine Service of Northern California, Inc. (IMS) and its President and CEO, Ronald E. Allen, Sr.

Under the settlement, IMS will pay restitution to victims, $276,000 in civil penalties and $184,000 to cover the prosecuting agencies’ investigative costs and attorney fees. The settlement and complaint it resolves were filed in Sonoma County Superior Court, which reviewed and approved the settlement.

In the complaint, Lockyer and Passalacqua alleged that IMS, which sells magazine subscriptions to consumers throughout the country via telemarketing, misled consumers about the cost of the subscriptions and failed to properly notify consumers of their right to cancel the service, in violation of state law.

"Our consumer protection laws are built on fairness and honesty," said Lockyer. "With its false and misleading sales pitches, IMS violated these fundamental principles and harmed consumers. This settlement holds IMS accountable for its misconduct and appropriately compensates the victims."Passalacqua added, "Our office is committed to working with the Attorney General to protect consumers in Sonoma County and throughout California from deceptive telemarketers."

Aside from the monetary payment, the settlement also prohibits IMS from engaging in a variety of practices to prevent future violations of the law and harm to consumers. Specifically, the settlement prohibits the defendants from:

• Making misleading statements and omissions in its telemarketing solicitations, including failing to clearly disclose the price of the magazine subscription plans being offered.
• Failing to disclose the number, frequency, and amount of any required installment payments.
• Failing to promptly honor requests by customers to cancel their accounts and/or to obtain a refund.
• Harassing or threatening customers when collecting debts.

Ron Allen & Associates, Inc., and its principal, Ronald E. Allen, Jr. also were named as defendants in the complaint and the judgment. The case is People v. International Magazine Service of Northern California, Inc., et al., SCV 238455.

Consumers who believe they are the victims of fraud should file a report with the Attorney General’s Public Inquiry Unit online at http://www.ag.ca.gov/consumers. Consumers in Sonoma County who believe they are the victims of fraud are urged to can file complaints by contacting the Environmental and Consumer Law Division of the Sonoma County District Attorney’s Office at (707) 565-3161.