OFFICE OF THE CITY CLERK • CONSUMER PROTECTION DIVISION

The Twelve Compact Discs for One Cent Contract

A Close Reading • Issued 1997

The Offer as Presented

Under the terms advertised by certain mail-order clubs operating within city limits, new members may receive twelve compact discs for the sum of one cent, plus shipping. The language appears generous. It is not.

“Twelve compact discs for the price of one cent, with no further obligation stated in the headline.”

The contract, however, continues on page three. Members must purchase a minimum of six additional discs at the club’s regular price within the ensuing twenty-four months. Regular price is defined by the club, not by market value.

Hidden Obligations

Shipping and handling on the initial shipment exceeds the cost of the discs themselves.
Failure to return the monthly selection card within ten days results in automatic shipment at full price.
Returned discs must be sent via certified mail; otherwise the club may claim non-receipt.
Early termination requires payment of all remaining minimum purchases at once.

Official Notice

The clause titled “Automatic Renewal” binds the member to a second twelve-month term unless written notice is received by certified mail no later than sixty days prior to the anniversary date.

Termination and Remedies

Residents who have entered such agreements may request a copy of the complete contract from the club. The Department recommends retaining all correspondence, including the original membership card and any monthly selection notices. Complaints may be filed in person at the Consumer Protection Division or via the form below.

File a Report

Provide details of any contract received. The Division will review for compliance with local advertising statutes.