Publishers Clearing House has agreed to pay more than $18 million to 23 states and the District of Columbia to settle allegations that it used deceptive sweepstakes promotions to get consumers to buy magazines, published reports say.
Under the agreement, Publishers Clearing House will change their business practices and give refunds to consumers who bought merchandise believing it would enhance their chance of winning a sweepstakes. The company must also keep a record of those consumers who do not want to receive future mailings.
Publishers Clearing House, Long Island, NY, did not admit wrongdoing. The company said it believes its mailings have always been clear to consumers, and that the cost of prolonged litigation made it too expensive to continue.
Network
