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January 26, 2016

Florida Magazine Seller to Cease Iowa Sales and Refund Iowans

Consumer Protection Division alleges company violated Iowa Door to Door Sales Act


(DES MOINES, Iowa) A Miami-based magazine seller will stop door-to-door sales in Iowa and provide refunds to Iowans who request them, through an agreement with Attorney General Tom Miller.

The settlement with KLMN Readers Services Inc. and signed by company owner Michael G. Whitely, Sr., settles Miller’s allegations of non-compliance with the Iowa Door-to-Door Sales Act, misrepresentations by salespeople, and non-delivery of magazine subscriptions.

The agreement, called an assurance of voluntary compliance, requires the company to cease door-to-door magazine sales in Iowa, and provide full refunds to Iowa consumers who file complaints through March 31. The company will also pay $7,000 to the state’s consumer education and litigation fund.

Door-to-door sellers, on behalf of KLMN, crisscrossed Iowa from August through October, in at least 27 cities, according to company records.

Miller’s office alleged that sellers made false and deceptive representations to consumers, failed to provide a required three-day notice of their right to cancel or provided inadequate notice, and in some cases failed to provide subscriptions that consumers ordered and paid for.

Whitely disputes the allegations.

In 2014, a Virginia judge ruled that KLMN violated that state’s consumer protection and door-to-door sales laws. While KLMN is registered in Miami, the company maintains a Chesapeake, VA mailing address.

Refunds
Iowans who have filed a complaint with the Consumer Protection Division or file a new complaint through March 31 will receive a full refund. To file a complaint:

Web:    www.iowaattorneygeneral.gov
Phone: 515-281-5926 (or toll-free at 1-888-777-4590 outside of the Des Moines area)
Email:  consumer@ag.iowa.gov

Iowa Door-to-Door Sales Act
The Iowa Door-to-Door Sales Act applies if a sale is for more than $25, if the sale is made at a location other than the seller's place of business, and if the goods or services will be used for personal, family or household purposes. The law requires sellers to provide Iowa consumers with a written and oral notice that they have three business days to cancel a purchase, and sellers must tell consumers how they can cancel.

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