American Family Publishers, Jersey City, NJ, will make several changes to its sweepstakes mailing packages and practices, and will set up a $3 million fund to settle consumer claims, the company announced last Friday.
The actions are the result of settlement agreements with attorneys general from the states of Florida, Indiana, South Carolina, and West Virginia, which had launched a series of court actions in February 1998. Under the terms of the settlements, AFP will admit no wrongdoing, but will make clear and conspicuous disclaimers, post prominent odds of winning, and make multiple “no purchase necessary” notices.
“I’m committed to making American Family Publishers the best example of sweepstakes in this country, and to offering consumers a convenient, cost-effective way to order the best array of magazines,” said AFP CEO Susan Caughman in a statement.
In March 1998 the company had signed agreements with 32 states and the District of Columbia. The company reached subsequent deals with three other states.
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