$18.5 million will be provided for the settlement of the Publishers Clearing House lawsuit. Reports say the company was accused of deceptive sweepstakes practices and misleading business tactics.
The direct marketing company, Publishers Clearing House, was accused of misleading customers to believe that they are required to order products before entering a sweepstake or to increase their chances of winning.According to Tabachnick, Publishers Clearing House customers enter the sweepstakes through the registration links emailed to them by the company. Thereafter, they are redirected to several web pages of advertisements for unrelated products.
Furthermore, the Publishers Clearing House was also accused of hiding the handling and shipping costs from the customers. The Federal Trade Commission (FTC) also claims that the company rented or sold consumer data until January 2019.
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Publishers Clearing House Lawsuit Settlement
According to Pequeño IV, the Publishers Clearing House did not admit to any wrongdoing and disagreed with the FTC’s allegations. Nonetheless, the company had agreed to settle the lawsuit in order to avoid further expense and litigation.
On June 27, the Publishers Clearing House agreed to settle the lawsuit for $18.5 million. In addition, a court order filed in the U.S. District Court also requires the company to make significant changes to how it operates its sweepstakes entries and lottery. Reportedly, the million dollar fund will be used to refund the customers and implement the changes to the business practices.
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