A nationwide class action has been filed against The Musicland Group, Inc.; Musicland Retail, Inc.; Suncoast Group, Inc.; and Media Play, Inc. on behalf of consumers who allege that the companies' music and media stores deceived thousands of customers by failing to disclose credit card charges associated with a supposedly free offer to receive Entertainment Weekly magazine. Alleging that the stores' actions constitute violations of state consumer protection and privacy laws, the action seeks unspecified compensatory and punitive damages on behalf of all persons whose credit or debit card information was improperly disclosed between August 1, 2001, and the date the class is certified by the court.

The action alleges that more than 1,000 Sam Goody, Suncoast and Media Play stores around the country systematically misled customers about the terms of an offer to receive Entertainment Weekly. Sam Goody stores are not named as defendants, but its parent, Musicland Group, is.

The action alleges that the scheme was targeted at customers who paid with credit or debit cards. Store employees allegedly told customers they could receive eight free issues of Entertainment Weekly, but did not mention that a subscription charge would follow unless the customers called a number to cancel. Also, the subscription card each customer filled out allegedly did not contain an authorization clause allowing the store to transfer financial information to the magazine's publisher. The first time many customers found out they were going to be charged was when they received a letter from Time, Inc. offering to charge their credit or debit cards to continue the subscription. The action alleges that Time paid the stores $7 per customer charged.