Newspaper Archive Inc. pays $100,000

A Cedar Rapids company ordered to pay $100,000 as part of a settlement with the Iowa Attorney General's Office over deceptive online practices made the payment Tuesday, officials reported.

Newspaper Archive Inc., which provides online access to digitized newspapers from across the country, is barred from using a pre-checked box on its website to collect donations for a charity, according to Dec. 3 judge's order. The company also must stop automatically renewing subscriptions and alert subscribers to price increases.

The Iowa Attorney General started investigating Newspaper Archive Inc. in July 2014 after The Gazette reported subscribers were upset about being tricked into making donations to a charity linked to the company's founder. Subscribers also had filed more than 100 complaints with the state and the Better Business Bureau about the company not allowing customers to cancel, refusing refunds and failing to answer calls or emails.

The bulk of Newspaper Archive Inc.'s operations have been in Mexico since 2009 and founder Christopher Gill lives in the Cayman Islands, the Attorney General's Office reports, but the company still is registered in Iowa.

The settlement required Newspaper Archive Inc. to pay $100,000 to the office, which will refund customers unwittingly charged for donations. The office received a check Tuesday from the company lawyer's trust account, Assistant Attorney General Steve St. Clair said.

'We expect to begin the process of reaching out to refund-eligible consumers next week,” St. Clair said. 'But the overall process will take a number of weeks, since it involves drafting notices, initial contact to see for whom we have good contact information, confirmation of eligibility, etc.”

The company provided payment records that will be used for refunds, but anyone charged for donations who wants a refund may contact the Consumer Protection Division at consumer@iowa.gov or (515) 281-5926.

Other reforms required in the settlement must be done by early January.