Colorado will receive $320,000 from a $3.5 million settlement to 32 states and the District of Columbia by Publishers Clearing House over its sweepstakes promotion practices.
The $3.5 million payment is to settle allegations by the states that the company “violated a 2001 consent decree prohibiting it from using false and deceptive trade practices to entice consumers to participate in its sweepstakes,” a press release from state Attorney General John Suthers said.
The 2001 settlement “stemmed from allegations that Publishers Clearing House used sweepstakes hype to convince recipients that buying something from the company would improve their chances of winning the grand prize,” Suthers said.
The tactics were particularly effective on seniors, he said.
States now cannot pursue legal action against Publishers Clearing House, and the company admitted no wrongdoing in the settlement.