California prosecutors have filed a civil complaint in San Diego County Superior Court against Pacific Magazine Billing LP and a network of related entities, accusing them of sending millions of deceptive mailers that misled residents into thinking they owed money for magazine renewals they never ordered.
The lawsuit names Pacific Magazine Billing LP, several affiliated companies and individual Steven Vande Vegte as defendants. Prosecutors from six counties joined California Attorney General Rob Bonta in bringing the case, which seeks an injunction, restitution and civil penalties for what officials call “widespread” violations of consumer protection laws.
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At the heart of the case are mailers that prosecutors say looked nearly identical to legitimate bills.
How did the mailers trick consumers?
According to the complaint, the mailers often included names of specific magazines, subscription pricing, reference numbers and phrases like “Notice of Renewal/New Order Offer.”
Visually, the documents resembled real invoices but didn’t include the clear legal disclaimers required by state and federal law. Under the law, any solicitation that could be mistaken for a bill must clearly state, in bold and conspicuous type, that the document is not a bill but a solicitation.
A June 2024 amendment to Section 1170 of the California Civil Code reads:
“THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.”
The required language must appear in at least 18-point bold type and in the language used in the solicitation.
Prosecutors allege that Pacific Magazine Billing’s notices failed to meet this requirement, which they say put consumers — especially older adults — at risk of paying for subscriptions they never wanted or needed.
The lawsuit cites violations of California’s Unfair Competition Law and False Advertising Law and seeks civil penalties of up to $2,500 for each violation, an injunction to stop the practice and an order that those affected be paid back.
Ads disguised as invoices have been reported in states across the country, including New York, Oregon, Illinois, Arkansas and Massachusetts. The Better Business Bureau has warned consumers for years to be on alert for these deceptive mailers. Their advice: Always question an invoice, especially if you didn’t order the product or don’t recognize the company.
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How to avoid misleading mailers
Consumer advocates have sounded the alarm about deceptive ads for years, with complaints frequently reported to the Better Business Bureau and other regulatory agencies. Similar scams often target seniors or frequent magazine readers, relying on confusion to collect payments.
Officials recommend the following steps if you receive what looks like a magazine subscription invoice:
- Read the fine print: Look for language like “This is a solicitation” or “This is not a bill.” If it is missing or buried in tiny type, treat it with suspicion.
- Verify the sender: If the company name doesn’t match the magazine’s publisher, that’s a red flag.
- Compare to past bills: Unsure if a renewal is legit? Compare the document to a previous subscription bill.
- Contact the magazine directly: Use the official website to reach customer service and confirm whether you owe anything.
- Beware of urgency: Phrases like “final notice” or “act now” are pressure tactics to get you to pay without reviewing details.
If you think you’ve received a deceptive bill, don’t pay until you confirm it’s legitimate. If it’s not, report it to the U.S. Postal Inspection Service and your state attorney general. Posting a review on the Better Business Bureau’s website can help warn others.
Steven Vande Vegte has declined to comment on this matter. The lawsuit is moving forward and could result in financial penalties, repayment to affected individuals and a court order shutting down the mailers for good.
In the meantime, staying skeptical can save you money. A careful look at your mail can go a long way to keep you safe.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
