The Federal Trade Commission announced on April 30 that Publishers Clearing House had agreed to pay $18.5 million to customers who were “harmed by misleading claims” made by the company.
In a press release from the FTC, the agency said that Publishers Clearing House had targeted older and lower-income customers, “deceiving them into thinking either that consumers could not enter into sweepstakes without purchasing a product or that their chances of winning would be increased by purchasing products.”
The FTC said that Publishers Clearing House had also misled customers using deceptive email subject lines as well as “deceptive shipping and handling fees.”
Officials said that checks will be sent to 281,724 affected Publishers Clearing House consumers within the next 90 days.
In a statement to USA TODAY, Chris Irving, Vice President of Consumer & Legal Affairs at Publishers Clearing House, said that the checks come from a settlement reached between them and the FTC in 2023.
“While we disagreed with the FTC’s assertions at the time, we were glad to have resolved the matter and move forward continuing to do what we do best – provide consumers fun entertainment and games powered by our famous chance to win,” Irving said.
Publishers Clearing House files for bankruptcy
Recent weeks have been shaky for Publishers Clearing House. In early April, the company filed for bankruptcy protection in New York, saying it would use the bankruptcy to try and streamline its operations, according to Reuters.
The company also said it would be using its bankruptcy to explore a sale of its assets or find a business partner willing to fund a long-term business plan for its digital businesses.
“Our world-renowned sweepstakes will continue to be a cornerstone of our experiences, and we intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business during and after this process to uphold the historic legacy of Publishers Clearing House,” CEO Andy Goldberg said in a statement to Reuters.
Contributing: Reuters
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.
This article originally appeared on USA TODAY: FTC orders Publishers Clearing House to pay customers $18.5 million
