More layoffs are under review after mega sweeps mailer United States Purchasing Exchange was required earlier this month to pay $30 million in a multi-state settlement. The mailer terminated 400 employees in January in the midst of negative publicity over deceptive mail practices.
"The review comes in response to both changing marketplace conditions and to the changes that are required in the settlement and class action suits," said Harvey Englander, spokesman for USPE.
Englander cautioned that there are no definite plans to lay off additional employees but that positions across the board are under review.
He declined comment on the impact the settlement has had on mail volume which at its height was reported to be in the tens of millions of direct mail pieces nationwide.
Commenting on rumors that the company was going out of business, Englander said "We have had losses and made changes. We don't have the sales that we had but we're moving forward and looking at other opportunities to expand the business."
Earlier this month California, 47 other states and the District of Columbia had reached the settlement with United States Sales Corp. of Northridge, CA, which does business as USPE. The settlement required the mailer to make dramatic changes in what it tells consumers in sweeps offers and to pay more than $30 million in restitution.
