A federal judge has found American Family Publishers in contempt for violating a deal in which the company agreed to tone down its contest promotions mailed to North Carolina households.
Chief U.S. District Judge Terrence Boyle found the sweepstakes company in civil contempt of a 1993 settlement that ended a lawsuit against the company’s practices.
The settlement said American Family Publishers would stop using “language of congratulations or other prizewinning declarations which, when considered in context … represents that the recipient of the envelope has won a prize.”
A hearing to address potential damages will be held June 29.
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