Winning the Publishers Clearing House sweepstakes seems like a dream that you wish could happen to you when you see the TV ad.
However, Publishers Clearing House has been deceiving people for decades.
It used language and designs on its website and in its email marketing that tricked consumers, including many older adults, into believing they had to buy things on the PCH website to enter a sweepstakes, the Federal Trade Commission said in a lawsuit. PCH also implied that buying something would improve their chances of winning a prize.
Customers who did buy something on PCH.com were in for surprises, the FTC said. PCH:
- Hid shipping and handling fees that added an average of 40 percent to customers’ orders.
- Made false claims that orders were risk free. Customers had to pay the shipping costs to return merchandise.
As part of the lawsuit’s settlement, PCH agreed to pay $18.5 million to the FTC to be used to refund consumers. It also will overhaul its sweepstakes sales processes, stop charging surprise fees, and make other changes to its email and internet operations.
If you’re considering participating in a sweepstakes contest, Alvaro Puig, FTC consumer education specialist, offers these recommendations:
- Real sweepstakes are free and by chance. It’s illegal to ask you to pay or buy something to enter.
- If you sign up for a contest, the promoters might sell your information to advertisers. If they do, you’re likely to see targeted ads online and get more junk mail, telemarketing calls, and spam email.
- Scammers try to trick you into believing you won a prize. Never share your financial information or pay fees, taxes, or customs duties to get a prize.
The FTC offers more information at recognizing prize and sweepstakes scams.
