Under pressure, PCH agrees to changes - Publishers Clearing House will clarify terms used in determining sweepstakes winners - Brief Article

Folio: The Magazine for Magazine Management, Sept 15, 1994

The top lawyers of 14 states, led by Minnesota Attorney General Hubert H. Humphrey III, reached an agreement with Publishers Clearing House in late August requiring the sweepstakes operator to make some changes in the way it does business. The counsels hope the $490,000 settlement - which does not include any admission of wrongdoing on the part of PCH - will set the standard for the way other sweepstakes are marketed in the future.

As part of the settlement, terms such as "finalist" and "tie breaker" must be more clearly defined, and PCH must reveal the average entrant's odds of winning each prize offered. "These reforms make it clear that consumers don't need to spend a dime to enter the sweepstakes," says Humphrey. "We have seen many cases where vulnerable consumers have spent a great deal of money on magazines just to keep competing for prizes." Robin Smith, president and CEO of PCH, says in a prepared statement: "In many ways, the agreement confirms practices and procedures we have observed all along. We're willing to o the extra mile to help consumers."