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LOS ANGELES (CNS) - A Chatsworth-based publisher of magazines about naval and aviation history has agreed to pay $30,000 as part of a judgment in a lawsuit brought by the District Attorney's Office alleging management continued to sell subscriptions to unwitting customers after the company temporarily ceased publishing in 2020.
Los Angeles Superior Court Judge William F. Fahey signed the agreement between the parties on Friday. In the lawsuit filed Nov. 29, the District Attorney's Office alleged Challenge Publications Inc. violated two sections of the state Business and Professions Code, including the Unfair Competition Law.
The $30,000 will cover civil penalties, restitution and investigation costs.
The judgment also directs Challenge for the next 10 years to not violate the relevant Business and Professions Code sections. If printing of any of its publications or other items it is selling has stopped for more than 30 days or is delayed by more than 30 days, Challenge is obligated to notify any new customers about a publication or item that is delayed and the length of the delay prior to accepting payment or taking payment information.
Challenge produces Air Classics, Warbirds International, Mustangs International and Sea Classics magazines, and the company temporarily ceased printing and publishing in May 2020, according to the suit. However, Challenge continued to sell magazine subscriptions to new customers knowing that those subscriptions would not be fulfilled, the suit alleged.
Challenge did not offer new and existing subscribers refunds, substitute items or services of equal or superior quality, according to the suit.
Customers who sought refunds sent emails to Challenge that were unanswered, and a third-party vendor for the company stated that since all of Challenge had closed for the time, there was no one there to process refund requests, the suit stated.
Printing and publishing resumed in January 2021, according to the suit.