In May 2002 Oxmoor House allegedly sent Gordon Sanderson a $29.71 bill for a gardening book similar to one that he had ordered and paid for three years earlier. In the interim, he had suffered a stroke that left him unable to garden anymore.

The action alleges that Oxmoor enrolls people like Mr. Sanderson, who legitimately order a book, in an "automatic delivery plan," sending more books that they didn't order or billing them for books that never arrive. The company allegedly sends out a mail solicitation that tells customers about the automatic delivery plan--but the solicitation allegedly looks like junk mail and many customers simply throw it away. If the customer doesn't send back the refusal form, the books and bills start arriving.

Customers who don't pay the bills are allegedly sent letters demanding payment. The action alleges that the letters say the customer can be put into a "bad debt" file if they do not pay.

Last year, Oxmoor House, which has its order fulfillment center in Tampa, entered into a plea agreement with the Florida Attorney General's Office to refund money to Floridians who paid at least $50 for any automatically shipped books. The Attorney General's Office alleged that the company had not adequately advised customers that buying a book would obligate them to receive future books in the series.

The settlement defines five separate classes of people that may be eligible for recovery:

1. Those who received and paid for no more than one or two subsequent books from June 15, 1997, through October 5, 2001. These people will be eligible to make a claim for an $8.00 refund for each subsequent book in all series in which the class member was enrolled and which they received and paid for but did not intend to receive or order.

2. Those who received and paid for no more than one or two subsequent books between October 6, 2001, and December 31, 2002, and who ordered their first enrollment book in a series on or before April 30, 2002. They are entitled to purchase a current book with a retail price of not less than $29.95 for the discounted price of $12.00, including shipping and handling.

3. Those who received at most one or two subsequent books from June 15, 1997, through December 31, 2002, returned one or more of these books, and paid the return postage. This group will be entitled to make a claim for a $3.95 refund for each subsequent book returned to Oxmoor House at the class member's own expense.

4. Those who received and paid for three or more subsequent books from June 15, 1997, through December 31, 2002. These class members are entitled to purchase a current book with a retail price of not less than $29.95 for the discounted price of $12.00, including shipping and handling.

5. Those who received at most one or two subsequent books between June 15, 1997, and October 5, 2001, and whose accounts have been classified by Oxmoor House as "pending" or "bad debt" or referred by Oxmoor House to a collection agency. For this group, Oxmoor House will cease efforts to collect amounts that may be owed for subsequent books covered by the settlement. These class members may keep the books sent to them with no adverse consequences to their credit.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for September 19, 2003.