Sweeps Mailer Hit With $30 Million Settlement

A multistate settlement has required mega-sweeps mailer United States Purchasing Exchange to include clear and conspicuous disclosures of “Sweepstakes Facts” in its mailings and establish a fund of $30.4 million for restitution to consumers nationwide who spent at least $1,870 with USPE in any one of the calendar years 1997, 1998 or 1999, California Attorney General Bill Lockyer said last month. In addition, USPE has agreed to pay the states more than $1.3 million for the costs of the investigation and has set aside another $3.6 million for the cost of administering the consumer restitution program. USPE has also agreed to discontinue sweepstakes mailings to any person who makes 25 purchases or spends more than $935 in a 12-month period. The company will also immediately stop mailing sweepstakes opportunities to anyone who in the past 12 months has purchased more than $2.500 worth of products. California, 47 other states and the District of Columbia reached the settlement with! United States Sales Corp. of No rthridge, CA, which does business as United States Purchasing Exchange and USPE.