Attorney General's News Release

June 24, 2004

Grolier and Scholastic at Home to resolve consumer complaints, pay $90,000 to state after Nixon investigation

Jefferson City, Mo. — Children's book seller Scholastic at Home Inc. has agreed to resolve hundreds of complaints from consumers who say they received unordered merchandise, and to pay $90,000 to the state after an investigation by Attorney General Jay Nixon.

Cole County Circuit Judge Richard Callahan on Tuesday (June 22) approved an agreement between Nixon, Scholastic at Home and its affiliate, Grolier Inc., in which the companies agree not to bill, charge, or attempt to collect payment from consumers for any merchandise which the consumer has not ordered or solicited.

Scholastic at Home's national distribution center is in Jefferson City. Both Scholastic at Home and Grolier are Delaware corporations whose principal places of business are in Danbury, Conn.

Two hundred forty-two consumers from around the country complained to the Missouri Attorney General's Office, other state attorneys general offices and the Better Business Bureau about the business practices of Scholastic at Home and Grolier. Consumers said they received merchandise they did not order, and some consumers said they were billed for the merchandise.

The companies have agreed to refund payments to those consumers who paid for the unordered merchandise. Those consumers who did not pay for the unordered merchandise will be allowed to keep the merchandise at no cost.

Scholastic Inc. purchased Grolier in 2000. Scholastic at Home and Grolier are now both subsidiaries of Scholastic Inc. Scholastic at Home informed the Attorney General's Office it has been reviewing the business practices of Grolier and making needed improvements in customer service.

"Scholastic at Home plays an important role in the education of many children across the country," Nixon says. "I am pleased this company has agreed to play by the book when it comes to treating families fairly."

Under the agreement, Scholastic at Home and Grolier will provide the Attorney General with a compliance report within 90 days detailing the resolution of the consumer complaints. The company will also maintain records of customer orders for one year. The Attorney General may have access to these records upon request to monitor the company's business practices.

Scholastic at Home and Grolier will pay $90,000 to the Missouri Merchandising Practices Revolving Fund to reimburse the state for the cost of this investigation and enforcement of the Merchandising Practices Act. Some of the funds will also go toward consumer education and advocacy.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818