Q: I constantly receive information from Publishers Clearing House. I entered a recent contest, but discovered that the date for the drawing was continuously moved back until another prize was offered. How is this scam not been investigated or challenged by government agencies?
—John Davis, Atlanta
A: Publishers Clearing House has settled at least three lawsuits in the past 15 years. It paid $18 million to 23 states in 2000 and agreed to be more specific when stating that purchases don't increase a person's chances of winning.
In 2001, PCH agreed to pay $34 million to 25 states and alter what was called deceptive marketing techniques. PCH was forced to refund customers and stop making false and misleading statements to persuade people to buy merchandise. The agrement also made PCH stop using certain phrases, including “guaranteed winner.”
In 2010, PCH agreed to pay $3.5 million to 34 states and again change its wording and tactics. The U.S. Senate Committee on Aging concluded last month that “new legislation may be needed to better protect consumers from email and online sweepstakes promotions.” Its 259-page report stated that “consumers are being misled by deceptive sweepstakes promotions from Publishers Clearing House.”
PCH contests are legitimate and all prizes are funded by company revenue, according to info.pch.com. The company has awarded more than $223 million since the contest started in 1967.
“I’m all for folks winning prizes, but it concerns me when seniors still report they’re being misled by Publishers Clearing House,” Sen. Bill Nelson, D-Fla., stated in the committee’s report.
Andy Johnston wrote this column. Do you have a question about the news? We’ll try to get the answer. Call 404-222-2002 or email q&a@ajc.com (include name, phone and city).
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