FTC Order Publisher settles homes to pay customers $18.5 million

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The Federal Trade Commission announced on April 30 that publisher Clearinghouse had agreed to pay $18.5 million to customers “harmful to misleading claims” the company had made.

In a press release from the FTC, the agency said the publisher Clearinghouse targets older and low-income customers and “deceives consumers to think that buying products will not allow them to enter the sweepstakes without purchasing them, or that buying products will increase the likelihood of victory.”

The FTC said the publisher Clearinghouse misunderstood the customer using the deceptive email subject and “deceptive shipping and handling fees.”

Officials said the checks will be sent to 281,724 publishers who will clear home 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 the checks come from the settlement reached between them and the FTC in 2023.

“We opposed the FTC claims at the time, but we were pleased to resolve the issue and continue to move forward by continuing to do our best.

Publishers clearing house files for bankruptcy

It has been unstable for publishers to clear their homes over the past few weeks. In early April, the company filed for bankruptcy protection in New York, saying it would use bankruptcy to streamline its business.

The company also said it would use bankruptcy to explore the sale of assets and find business partners to fund long-term business plans for its digital business.

“Our world-renowned sweepstakes will continue to be the basis of our experience and will continue to offer free entertainment and awards during and during this process, in regular business courses.”

Contribution: Reuters

Fernando Cervantes Jr. is a trending news reporter for USA Today. Contact him at fernando.cervantes @gannett.com and follow him at x @fern_cerv_.



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