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PCH reaches $34 million sweepstakes settlement with 26 states

Publishers Clearing House (PCH) has agreed to pay $34 million to 26 states to settle all remaining allegations that it employed deceptive sweepstakes promotions to sell magazines. The agreement comes 10 months after the company, one of the largest U.S. magazine subscription agencies, settled with the other 24 states and the District of Columbia for $18 million.

As part of the settlement, PCH will have to pay $34 million in customer refunds, legal expenses and administrative costs to the states. (Each state's share has yet to be determined.) Also, PCH has agreed to implement:

* Consumer protection programs to identify and remove from its mailing list consumers who may be confused about sweepstakes promotions.

* Permanent inclusion in all mailings of "Sweepstakes Facts Disclosures" which display the odds of winning, giveaway end dates and "no purchase is necessary" messages.

* The use of a single exclusive method of entry for all consumers who wish to enter the sweepstakes;

* A "Special Compliance Counsel" to act as a liaison between the states and PCH on an ongoing basis;

* Equal prominence for conditions to winning in statements about winning.

"Publishers Clearing House will conduct its sweepstakes in complete and full accordance with the terms of this settlement which sets a new high water mark for industry standards", said Christopher Irving, senior director of consumer affairs for PCH. "Consumers can participate in the Publishers Clearing House sweepstakes with total confidence in the honesty and fairness of our promotions and with the knowledge that we are committed to doing the right thing for all consumers".

The states involved in the latest settlement include: Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, West Virginia and Wisconsin.

Source: BonusGambler.com Editors' Choice