AmEx Publishing pays $600,000 to settle false advertising case

 American Express Publishing Corporation (AmEx Publishing) has agreed to pay $600,000 in civil penalties and restitution to settle a civil law enforcement action for false advertising brought by the District Attorneys of Sonoma, Napa, Marin, Santa Cruz and Solano counties, according to a news release Wednesday from Sonoma County District Attorney Jill Ravitch. 

The Stipulated Judgment, approved by Napa County Superior Court Judge Francisca Tisher, prohibits AmEx Publishing from making or disseminating statements promoting “FREE” airline tickets in conjunction with trial magazine subscriptions offers unless use of the word “FREE” complies with Federal Trade Commission guidelines.

 “Our office is working with prosecutors throughout California to protect our citizens from false and misleading sales pitches such as this one,” Ravitch said.

 The multi-county investigation revealed that AmEx Publishing mailed American Express solicitations to cardholders offering two issues of its SKYGUIDE magazine plus a “FREE Airline Companion Ticket just for trying SKYGUIDE,” for a processing fee of $2.99. 

If the customer wished to continue the subscription they would automatically be billed for a one-year subscription on their AMEX card without doing more.  The solicitations stated that the “FREE Airline Companion Ticket” was “worth up to $744.00.” 

Consumers who accepted the offer were directed to make the airline reservation on a website operated by a third party travel marketing company.  The consumers allegedly would receive a FREE companion ticket if they booked an airline ticket on the website at the prices quoted on the website for a single ticket. 

However, the prices quoted on the website for a single airline ticket were significantly higher than the published price for a single ticket for the exact same itinerary if purchased directly from the airline.  In most cases, the price for a single airline ticket on the website was almost double what the ticket would cost if purchased directly from the airline.  AmEx Publishing cooperated fully in the investigation.

 Consumers in Sonoma County who believe they are the victims of fraud are urged to contact the Environmental and Consumer Law Division of the Sonoma County District Attorney’s Office at (707) 565-3161.