American Family Publishers is prohibited from using deceptive language in its mailings to Connecticut and Iowa consumers as part of a settlement the sweepstakes giant reached with both states. Terms also include $250,000 in restitution to Iowa for its consumers and $216,000 to Connecticut. The settlements follow months of negotiations in which the company has reached voluntary agreements with dozens of other states. Connecticut Attorney General Richard Blumenthal’s office said that AFP is required by court order to stop using solicitations containing large, bold headlines that imply the recipient has won the grand prize and that all “winner statements” may be used only if they do not contradict and are in the same font and typeface as statements that follow. In addition, the odds of winning, information about refunds and other relevant information must be displayed in prominent typeface, size, color and placement. The Iowa settlement includes barring AFP from using claims that a person has won a prize, has a higher chance to win or is close to winning. It also prohibits the sweeps mailer from representing that a purchase is necessary or helpful to win a prize. Both states bar the use of the word “finalist” unless the recipient is in fact a finalist. AFP admitted no wrongdoing. The company said the settlement has enabled it to avoid extensive litigation, allowing it instead to focus on starting up a variety of new businesses. AFP filed Chapter 11 bankruptcy protection last October.
Network
