Seventeen more states are suing sweepstakes giant Publishers Clearing House for alleged consumer fraud, using deceptively using the lure of sweepstakes prizes to sell magazine subscriptions.
The suits were filed Monday by the attorneys general of California, Colorado, Georgia, Illinois, Louisiana, Minnesota, New Mexico, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Utah, Vermont, West Virginia in their respective state courts.
Their suits allege that many of PCH’s sweepstakes mailings since 1996 were deceptive in that they falsely lead recipients of their mailings to believe that they were a guaranteed winner when, in fact they were not, and that ordering merchandise or magazine subscriptions would enhance their chances of winning.
The allegations are similar to those in lawsuits pending against the company in Arizona, Connecticut, Florida, Indiana, Michigan, Missouri, Texas, Washington, and Wisconsin state courts and a class action suit pending in federal court.
In each case, the attorneys general seek court orders against the practice and refunds for people who bought merchandise or took out magazine subscriptions seeking to improve their chances of winning big cash prizes.
Deborah Holland, senior vice president of PCH, said in a statement that the states want PCH to “agree to prohibitions and restraints that go well beyond the requirements of law, some of which would prohibit promotional expressions routinely used by the state lotteries, with no assurance that any of our competitors would be held to the same standards.”
Back in October, one of those competitors, Jersey City, NJ-based American Family Enterprises, filed for federal bankruptcy protection after reaching a $33 million settlement to end dozens of class action lawsuits stemming from similar charges.
And last month President Clinton signed the Deceptive Mail and Enforcement Act into law which imposes tough new government regulations on the direct mail sweepstakes industry as of April 13.
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