Rodale Inc. Charges: FTC, State AGs, and Class Actions

Rodale Inc., the Emmaus, Pennsylvania health and fitness publisher behind Prevention, Men’s Health, and Runner’s World, faced a string of legal actions across five decades before Hearst acquired its magazine business in 2018. The Rodale Inc. lawsuits and enforcement matters on record include a 1960s Federal Trade Commission case over deceptive book advertising, a Florida Attorney General settlement over billing, a Michigan subscriber-privacy class action, age discrimination claims by former employees, and a long-running publishing contract dispute.

The FTC Deceptive Advertising Case

The FTC filed a complaint against Rodale Press, Inc. and Rodale Books, Inc. in 1964 under Section 5 of the Federal Trade Commission Act. The agency targeted ads for three titles — The Health Finder, How to Eat for a Healthy Heart, and This Pace is Not Killing Us — alleging the ads implied that following the books’ advice could cure or prevent cancer, heart disease, arthritis, tuberculosis, and high blood pressure, and could remove the need to see a doctor.¹

After a full hearing, the FTC issued a cease and desist order against Rodale. Rodale appealed, and on October 18, 1968, the D.C. Circuit vacated the order in Rodale Press, Inc. v. Federal Trade Commission, 407 F.2d 1252. The court found that the FTC had shifted its legal theory during the case, moving from a claim that the health assertions in the books were scientifically false to a final order based on the different theory that the ads misrepresented what the books contained. That shift, the court held, deprived Rodale of notice and a chance to defend, violating the Administrative Procedure Act.² The FTC dismissed its complaint in December 1968.³

Florida Attorney General Billing Settlement

In October 2010, Rodale reached a settlement of up to $1.3 million with the Florida Attorney General’s Office. The investigation focused on Rodale’s use of trial offers, automatic subscription renewals, and automatic product shipments. According to the Attorney General, Rodale billed consumers for free trials when they did not return items or cancel in time, and enrolled consumers in automatic renewal and shipment programs without adequate consent.⁴

Rodale agreed to refund affected Florida subscribers, pay the state’s investigative costs, and clarify how consumers were told about terms before being enrolled in automatic programs. The company said it had not broken any laws and described the matter as limited to Florida.⁴

Michigan Subscriber Privacy Class Action

A class action filed in July 2014 alleged Rodale violated Michigan’s Video Rental Privacy Act by disclosing customer magazine subscription information to third-party marketing companies without consent. The class covered roughly 570,000 consumers who purchased Rodale subscriptions between July 1, 2009, and May 3, 2016.⁵

Rodale agreed to a $4.5 million settlement while denying wrongdoing, saying it settled to avoid the cost and uncertainty of continued litigation. A final approval hearing was scheduled for September 7, 2016, in federal court in Michigan.⁵

Pennsylvania Attorney General Inquiry

The Pennsylvania Attorney General’s Office signaled interest in Rodale in 2016. Basil Merenda, then chief deputy attorney general, said “Rodale is on our radar for the way it markets and conducts its business.”⁵ Available records do not show a formal enforcement action or settlement resulting from that inquiry.

Age Discrimination Suits by Former Employees

In August 2003, Kenneth C. Evans, a former business manager in Rodale’s finance department, sued the company for age discrimination in the U.S. District Court for the Eastern District of Pennsylvania, seeking $500,000 in damages. In February 2004, former editor David Taylor filed a second age discrimination suit against Rodale and executive Tom Beusse, alleging a “pattern and practice of Rodale to remove older employees” and citing the January 2002 firing of executive editor John Viehman. U.S. District Judge Juan R. Sanchez denied Rodale’s motion to dismiss Taylor’s case in October 2004, letting it move forward.⁶

Ware v. Rodale Press

Reginald Ware and his company, Ware Communications, Inc. (WCI), sued Rodale Press in the Eastern District of Pennsylvania in 1995 over a 1993 agreement to publish a magazine called Heart & Soul. The complaint included breach of contract, fraudulent misrepresentation, and invasion of privacy. Rodale counterclaimed alleging sexual harassment by Ware, and a jury found in Ware’s favor on that counterclaim in 1997.⁷

Most of WCI’s original claims were dismissed, though breach of contract survived on appeal and was remanded. The case ended in 2002 when the district court sanctioned WCI for repeatedly failing to provide any damages calculation in discovery. The court barred WCI from putting on damages evidence, which effectively ended the remaining claim. The Third Circuit affirmed the dismissal on February 28, 2003.⁷

What Happened to Rodale

Hearst announced on October 18, 2017 that it would acquire Rodale Inc.’s magazine and book businesses, including global editions of Men’s Health, Women’s Health, Prevention, Runner’s World, and Bicycling, plus international print editions and websites.⁸ Penguin Random House separately bought the assets of Rodale Books. The transaction closed on January 9, 2018, with financial terms not disclosed, ending Rodale Inc. as an independent publisher.⁹

1
Boston College Law Review. FTC Regulation of Deceptive Book Advertising
2
Justia. Rodale Press Inc. v. Federal Trade Commission, 407 F.2d 1252
3
Federal Trade Commission. FTC Commission Decision Volumes, Volume 71
4
lehighvalleylive.com. Rodale Settles With Florida Attorney General
5
The Morning Call. Rodale Settles Michigan Lawsuit Over Subscriber Privacy for $4.5 Million
6
The Morning Call. Former Rodale Editor Claims Age Discrimination
7
FindLaw. Ware v. Rodale Press Inc.
8
Hearst. Hearst Agrees to Acquire Rodale Inc.’s Global Content Business
9
Hearst. Hearst Completes Acquisition of Rodale Inc. Magazine Media Brands