Archived Story - Brownsville Herald: Community

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Archived Story

Print
Font Size:
Default font size
Larger font size

Posted: Wednesday, June 27, 2001 12:00 am

Sweepstakes company

reaches settlement

Lawsuit: States get $34 million.

The Associated Press

Publishers Clearing House agreed to pay $34 million in a deal with 26 states

Tuesday to settle allegations the sweepstakes company employed deceptive

marketing.

As part of the settlement, the company will no longer use phrases like

guaranteed winner.

This will in fact revolutionize the sweepstakes industry, said Michigan

Attorney General Jennifer Granholm.

Publishers Clearing House will have to pay $34 million in customer refunds,

legal expenses and administrative costs to the states.

We listened to the states concerns and have agreed to responsive and

significant changes that will make our promotions the clearest, most reliable

and trustworthy in the industry, said Robin Smith, chairman & CEO of the Port

Washington, N.Y.-based company.

In the lawsuits, state attorneys general had accused Publishers Clearing House

of deceptive marketing for its sweepstakes promotions. The suit alleged that

the company was misleading consumers by making them believe they had won

prizes or would win if they bought magazines from Publishers Clearing House.

Publishers Clearing House reached an $18 million settlement last August with

24 other states and the District of Columbia.

In 1999, another sweepstakes company, American Family Enterprises, settled a

group of lawsuits for $33 million.

That company is known for the American Family Publishers sweepstakes plugged

by Dick Clark and Ed McMahon.

  • 85227774

    • icon Updated: 12:04 am
  • 85230896

    • icon Updated: Yesterday
  • 85230858

    • icon Updated: March 27
More Display Ads

Follow us on Facebook

Pet Central

pets

Having a pet is a lot of responsibility, and we’ll help by giving you lots of tips and tricks! More >>

Fitness

Fitness

Our fitness articles will help teach you how to work out with gym- and home-based exercises. More >>

Crosswords

Crosswords

Enjoy the crosswords challenge in our free daily puzzles, from the harder Sunday crossword to the quicker daily. More >>

Sudoku

Sudoku

Every Sudoku has a unique solution that can be reached logically. Enter numbers into the blank spaces so that each row, column and 3x3 box contains the numbers 1 to 9. More >>