Publishers Clearing House, the Port Washington, NY-based magazine subscription sweepstakes marketer, has reached a settlement with 26 state attorneys general. The companysettled with 24 states and the District of Columbia last summer.
Under the accord, Publishers Clearing House agreed not to make false, deceptive or misleading statements to consumers who were lured into buying merchandise because they believed it would increase their chances of winning a sweepstakes.
In addition, the firm will no longer use simulated checks to suggest a consumer is an imminent winner and instead must stress that sweepstake entrants have not yet won. It must also tell consumers they need not buy magazines in order to win. Highlights of the settlement include:
*Removal from the mailing list of consumers who may be confused about sweepstakes promotions
*The use of a single method of entry for all consumers who wish to enter the sweepstakes
*Establishment of a “special compliance counsel” to act as a liaison between the states and PCH on an ongoing basis
The states participating in this settlement are: Arkansas, Arizona, Colorado, Connecticut, Delaware, Florida, Iowa, Indiana, Kansas, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Wisconsin and West Virginia.
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