- Florida AG Ashley Moody and the Federal Trade Commission (“FTC”) reached a settlement with the operator of magazine subscription service Inmate Magazine Service, Inc. and related entities (collectively “Inmate Magazine Service”), and its owner, Roy Snowden, to resolve allegations that Inmate Magazine Service failure to deliver magazines as promised violated the FTC Act and the FTC’s Mail, Internet, or Telephone Order Merchandise Rule as well as the Florida Deceptive and Unfair Trade Practices Act.
- The complaint alleged that Inmate Magazine Service marketed magazine subscriptions for prisoners and promised that the magazines would arrive within 120 days. In reality, the magazines often arrived late or did not arrive at all, and Inmate Magazine Service did not provide the required notice of late delivery and the opportunity to cancel the order. The complaint also alleged that customers encountered difficulties when they tried to contact the company for refunds or updates on the paid-for deliveries.
- Under the terms of the stipulated order, Snowden is subject to a judgment of $2.2 million, which is partially suspended due to his inability to pay, with Snowden required to turn over nine bank accounts associated with Inmate Magazine Service. Any money recovered from Snowden’s bank accounts will be used for consumer restitution via an FTC-administered fund. Snowden is also permanently enjoined from marketing or selling magazine subscriptions, among other things.