Better Business Bureau of Southern Arizona is warning magazine subscribers of Publishers Billing Exchange (PBE) after several hundred consumers allege non-delivery and refund issues.

Complainants typically allege the company mails solicitations resembling bills to consumers who are already subscribers to national publications. Some consumers pay the company believing they are paying the actual publisher. When consumers realize they renewed through a third party and paid more than what the publisher charges, they cancel their orders and allegedly experience difficulty obtaining a refund. In some cases, complainants claim they never received the ordered publication.

Some companies have posted notices on their websites stating they will not honor subscriptions purchased through the company. PBE claims they have contracted with a clearing house to sell the subscriptions.

The company currently has an “F” rating with Better Business Bureau serving Northern Nevada for failing to responds to ten complaints. In total, the company has generated 353 complaints in the past year. In some cases, the company responded to complaints by offering a full or partial refund.

The Nevada address given to consumers is believed to be a mail drop along with addresses in Sierra Madre, CA; La Habra, CA; and White City, OR.  BBB lists more than 20 names for the company including Lakeshore Publishing Service, Publishers Network Exchange and Global Publishers Center.

“Solicitations like PBE’s make it important for consumers to read the fine print before agreeing to anything,” said Kim States, BBB President. “In this case, it is stated that the solicitation is not a bill, but it’s not stated as required by federal law and is still misleading consumers.”

United States Postal Inspection Service requires businesses mailing solicitations resembling bills or invoices to include specific disclaimers identifying it as a solicitation in at least 30 point font. The solicitation reviewed by BBB, dated September 27, 2010, did not comply with federal law.

BBB recommends verifying all invoices, bills or statements that are out of the ordinary by reading the fine print and speaking to the company directly.

Better Business Bureau receives thousands of complaints each year from consumers who have unknowingly purchased multi-year magazine subscriptions. Unscrupulous telemarketers sometimes trick consumers into paying hundreds of dollars for multi-year subscriptions to magazines they don’t want or can’t afford. BBB warns that deceptive door-to-door magazine sales crews are hitting the pavement and looking to earn a quick buck this summer.

Oftentimes, the door knocking presentations are so slick that consumers aren’t even aware that they have bought several magazine subscriptions until they receive the bill. In 2011, BBB has already received 662 complaints about door-to-door magazine sellers and dealers, a number that’s well on its way to toping last year’s nearly 1,200 complaints. These high pressure sellers use tactics that can have anyone falling victim.

“With the summer months fast approaching, the warm weather is sure to bring an eager group of door knockers from all trades to your door,” said Kim States, BBB President. “Most complaints against door knockers selling magazine subscriptions allege that sales representatives took their check and the magazines never arrived, while some complainants also allege being subjected to high-pressure and misleading sales tactics.”

This summer, BBB recommends the following on how to handle door-to-door magazine sellers:

Listen carefully and be aware of high pressure sales tactics. Some unscrupulous door-to-door sellers will put pressure on you to close the deal at that moment, and even make special offers to entice you. Listen to their tone. Are they increasing in volume as they speak to you? Are they ignoring you despite saying you are not interested? Find a way to end the conversation quickly to avoid long, drawn-out pressure sales pitches.

Stand strong. Do not invite unsolicited salespeople into your home. If you do allow a salesperson inside and decide during the presentation that you are not interested in making a purchase, simply ask him or her to leave. If the salesperson refuses to leave, threaten to call the police, and follow through if they don’t leave immediately.

Verify the individual and the company. If you are interested in buying from a door-to-door seller, get everything in writing including price, warranty and all conditions. Tell the salesperson you will check it out and get back to him or her. Ask for a business card and contact information. Look the company up yourself and check to verify this person is an employee. Also, take the time to check out the company’s BBB Business Review at www.bbb.org.
Know your rights. The Federal Trade Commission’s Three-Day Cooling-Off Rule gives the customer three days to cancel purchases over $25 that are made in their home or at a location that is not the seller’s permanent place of business. Along with a receipt, salespeople should also include a completed cancellation form that customers can send to the company to cancel the agreement. By law, the company must give customers a refund within 10 days of receiving the cancellation notice.

Victims of fraudulent magazine sales can file a complaint with BBB at www.tucson.bbb.org, local law enforcement, and the Arizona Attorney General’s office.