Publishers Clearing House Settles Suits

N E W  Y O R K, Aug. 23 -- For years now, letters from Publishers ClearingHouse have arrived in mailboxes nationwide with what looked likechecks for large amounts and enthusiastic congratulations — “Youare a winner!”

But officials in two dozen states and the District of Columbiasay that consumers have really been the losers, and announced an$18 million settlement with the direct marketer to curb itsallegedly deceptive sweepstakes promotions.

Tuesday’s settlement, stemming from lawsuits and investigationslaunched by the states over the past two years, calls on PublishersClearing House to change many of its practices and provides moneyto reimburse some consumers.

The money will go to the states to reimburse customers who spentat least $2,500 with PCH between 1997 and 1999, the years duringwhich investigations took place.

Starting to Correct the Wrong“We believe that this agreement will help put an end to to thehorror stories of consumers, especially seniors, buying thousandsof dollars in magazine subscriptions that they don’t need and can’tafford in the mistaken belief it will help them win a grandprize,” said Attorney General Eliot Spitzer of New York, one offour states that lead the push for a settlement.

Washington State Attorney General Christine Gregoire agreed,saying pitches from Publishers Clearing House and other directmarketers lure people in by giving them false hope.

“Hopefully, the settlement we’ve reached today will bring anend to a practice that has left too many citizens nearly pennilessand their families devastated,” Gregoire said.

Attorneys general in California and Ohio also played activeroles in negotiating the settlement.

Clear-cut RulesThe settlement with the states imposes a number of conditions onPublishers Clearing House, which sells magazine subscriptions andcollectibles by mail. Consumers have never been required to makesuch purchases to win one of the company’s giveaways or to improvetheir chances of doing so.