Lack of Integrity in Hearst Magazine Marketing

I got an interesting letter from the subscription services department of Hearst Magazines.  It opens with:

"Your delinquent account with us has been brought to my attention for collection.  "Subscription Suspended for Non-Payment", that's what our records reflect."

The letter then asks me to send them money in an enclosed envelop that requires a stamp.  The letter is signed by someone from their "Credit and Collections" department.

I assume the letter relates to Smart Money, a publication that I did not renew when my subscription ran out.   The letter has no information on my account such as what magazine, why I am deliquent, when I became deliquent, etc.   Also, they did't provide any contact information beyond a post office box in Iowa. 

It is common industry practice to use "automatic renewal".   In small print on their subscription cards magazines state by subscribing you will be automatically renewed and billed for the magazine until you cancel.  Most people don't realize it, but they are signing up forever when they subscribe to a magazine.  I actually don't object to this - it cuts down on my paperwork and ensures continuous delivery of the magazines I want.   

What I object to is sending a marketing renewal letter that strongly hints that it is part of a collections process.  This is clearly meant to intimidate people into renewing magazines they don't want.  Simply put, they are using misrepresentations in hopes they can bully people into buying their product.  This is unethical marketing. 

I've posted on the growing importance of marketing integrity, and how social media, word of mouth, and the Internet will "out" companies that behave in unethical ways.  This is a good example of that trend.  I may not have the reach of Hearst, but between my blogs, presentations and speeches thousands of people in Smart Money's target demographic will hear this story over the next few months.  That is the power of social media and word of mouth, and why business integrity will increasingly matter.

*** I did an update on this topic on April 26th, 2008.***

Comments

[Anita Campbell]

This reminds me of the payment tactic by a well-known paid business newsletter a few years ago. It was an in-your-face message that said, "Hey, Anita, we haven't received your renewal check yet. What's the problem?"

It was good at one thing -- it sure got my attention.

I jumped right on it!

I wrote "cancel" on the communication and sent it back.

Although I must say the Hearst situation sounds worse, accusing you of being in arrears.

[Eric and Alissa Ross]

My wife signed up for a free month a hearst publication, of which they only sent one issue. They have now been sending us "Credit and Collections" letters that say we owe them ten dollars, that must be sent to Iowa. This sort of scam should be considered CRIMINAL. I AM FURIOUS!!!!

[Max Gladstone]

We paid for a one year subscription to "O" magazine (Hearst Publication). About 8 months into the subscription we started receiving invoices from Hearst indicating "PAYMENT DUE", and mentioning a renewal agreement that was never made. In my view this is absolute fraud. We've mailed a formal complaint in response to the invoice, and have CC'd the complaint to Cathie Black (President Hearst Magazines), as well as the publisher of the magazine, the Iowa Attorney General, and the California Attorney General.

[Vivian Hernandez]

When I received my invoice for 2 subscriptions for O magazine I mailed in my check with the payment. Shortly after I received my check and the invoice in the envelope "returned undeliverable." THe address on their envelope was wrong! I then received a late notice for non payment. I had to google the Better Business Bureau in Iowa and spend tons of time on the phone with them trying to find the correct PO box t send the payment. In the meantime I nor the person I got a gift subscription for received any magazines. I am so sorry I signed with Hearst Magazines.

[steve]

Vivian:

I posted on this topic 7 months ago and the post still gets a regular stream of traffic with complaints about Hearst.

In fact, it gets enough traffic to have a Google page rank of 3, which is very high for an internal blog page this old.

I sent Hearst another note on this about 3 months ago. There was no response.

I hear if you can get them on the phone they do a good job of fixing problems.

Good Luck.

Steve

[Lisa]

In early 2007, I signed up for a subscription to both Redbook and Good Housekeeping magazines. I paid for both those subscriptions immediately. My subscription to Redbook does not even run out until 2/09 and the subscription to Good Housekeeping ran out 2/08. A few months after the subscription began, I started being harassed via mail about a "Continuous Service Program" that I had supposedly signed up for, which I did NOT sign up for. The letters I received were asking for payment for my subscription renewal. A) I did not sign up for a renewal and B) my subscriptions were not even expired yet. The letters continued getting more and more demanding and they also threatened my credit rating. I called Hearst at one point and was given an apology and the lady on the telephone told me they had received many complaints about this policy and said I would not receive anymore letters. Wrong!! I am still receiving them. The latest letter, which I received today, states:

"IMPORTANT NOTICE

Dear Customer,

We extended to you the privilege of paying later for your subscription. By entering into this agreement we anticipated that you would remit a payment when billed. The balance outstanding is now several months past due.

We have sent you numerous bills. We must not insist that you send us your payment immediately.

This will be your final opportunity to resume service on your subscription and restore your good standing.

Yours Truly,
William Drake
Credit & Collections Manager"

Everything, including the writing on the envelope, is in red like I'm past due. Keep in mind this letter came from Redbook today, a magazine in which my subscription is paid for until 2/09!

I am beyond disgusted and angry about these threats and that is what they are. This company is threatening me like I'm someone who does not pay my bills. They have been paid! I'm thinking it's time to contact Oprah and let her know the company that publishes her magazine is conducting itself in this manner. I called Redbook just now and canceled the rest of my subscription via an automated response system on the telephone. I doubt I'll ever see a refund of the remaining subscription, but I'll bet the harassing letters will continue. How can they be allowed to continue with this practice?

Lisa

[Lisa]

P.S. For anyone else still having problems with Hearst, please go to www.ripoffreport.com and file a complaint. There are already 2 complaints there about Hearst. I don't know if it will do anything, but it doesn't hurt to try. Thanks.

[Steve]

Hearst continues to amaze me by their unethical marketing practices. Too bad, I like their publications.

I'm going to try to contact them again and see if I can get a response.

Steve

[Michelle]

I just called regarding this same issue (letters signed by their Credit & Collections department saying it was my "obligation" submit my payment to continue with uniterupted service.

The Customer Service Rep on the phone just said that they are all on an "automatic renewal" and that all those letters are pre-printed unless you call in and verbally cancel.

UGH. SCAM!

[Cindy]

I am trying to respond to the same letter sent to my father. I suggest anyone who receives such mailings write immediately to the Attorney General of their state. This kind of behavior would not be left unpunished if it were the everyday citizen. It is a disgrace.

[Tina Dove]

For my daughters birthday I subscribed to Cosmopolitan, thru Hearst Magazines. In checking my account status which says it is paid and active but waiting for a renewal payment. She's only received 3 issues so why the renewal payment? From reading other comments, I found the answer! How can they, Hearst get away with this. What I thought was an excellent idea has turned into a nightmare with intiminating bills. How can I get out of this? I am furious also!

[Tina Dove]

For my daughters birthday I subscribed to Cosmopolitan, thru Hearst Magazines. In checking my account status which says it is paid and active but waiting for a renewal payment. She's only received 3 issues so why the renewal payment? From reading other comments, I found the answer! How can they, Hearst get away with this. What I thought was an excellent idea has turned into a nightmare with intiminating bills. How can I get out of this? I am furious also!

[Tina Dove]

For my daughters birthday I subscribed to Cosmopolitan, thru Hearst Magazines. In checking my account status which says it is paid and active but waiting for a renewal payment. She's only received 3 issues so why the renewal payment? From reading other comments, I found the answer! How can they, Hearst get away with this. What I thought was an excellent idea has turned into a nightmare with intiminating bills. How can I get out of this? I am furious also!

[Disgruntled in MN]

I have experienced the same issue with Hearst magazine's sleazy practices. I ordered Popular Mechanics and actually would have renewed my subscription if they had let me do it on my own will...Now that they have threatened my credit by involving a "Collections Manager" and by taking part in unethical "product cramming," I will absolutely never buy that publication again. I can't imagine how much trouble my small business would get in if I recharged someone for a service they bought a year earlier. They need to be punished legally for this!

[Rich]

I also received an automatic renewal bill from Smartmoney magazine/Hearst and the amount was for $26.00. I tried finding a phone nr for Hearst magazine on the smartmoney website and could not find one but I did notice a 1 yr subscription fee for $15.0, twice what I was being asked to pay. I pulled an old mag and found the customer srvc nr inside (800-444-4204) and asked why is that? Anyway, without too much haggling I got the $15.00 price.

[Daniel]

So im not the only one this has happened to. I just received a letter from the "collections manager" saying they have sent numerous copies of cosom to our friend. "friend subscription". I sent the payment back in feb of 09 and it was returned as undeliverable. I wasnt going to send another check to the same address so I just did nothing. No more magazines were sent to our friend so i figured everythng was ok. Now 4 months later i get this letter?? And to try to find a contact number.forget it! Im done with hearst!!

[jan]

Same thing has happened to me with regards to a Veranda subscription. I can't find a number or email contact to confirm that I did not and do not plan to renew my subscription. Help!! Has anyone made any headway with this. The letters sent imply that I have entered some type of contract with them. What happens if I just throw the letters away? Can they put a mark against my credit?

[CDB]

Hearst Contact information:

Cathleen (Cathie) Black
President
Hearst Magazines International
1 South Wacker Drive
Chicago IL 60606 USA

Ph # 312.984.5105

[Austin]

That is calculated, unethical, and when extrapolated, very costly to the client base.

http://www.business-credit-book.savvybox.net

[JC]

After talking with someone at Hearst's New York office (supposedly the Controller- horrible customer service and phone etiquette by the way), I dug deeper and finally found the number for Popular Mechanics and had them cancel the subscription... They were unapologetic for their incredibly deceitful tactics and even after I told them about all the irate customers out there and the web articles attesting to their bad business practices, that it would behoove them to make the continual renewal information larger and more visible, I was told that "it's right there on the subscription form and there was no need to change anything". This lack of customer appreciation and care is simply outrageous... I urge anyone who has been a victim or knows someone who has/is going through this to file as many bad business/rip off reports as possible on Hearst and their publications.

Popular Mechanics:800-333-4948