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Publishers Clearing House, LLC (PCH), FTC v.

As a result of a Federal Trade Commission lawsuit, Publishers Clearing House (PCH) has agreed to a proposed court order will require it to pay $18.5 million to consumers who spent money and wasted their time, and make substantial changes to how it conducts business online.

In a complaint against PCH, the FTC charges that the company uses “dark patterns” to mislead consumers about how to enter the company’s well-known sweepstakes drawings and made them believe that a purchase is necessary to win or would increase their chances of winning, and that their sweepstakes entries are incomplete even when they are not. The FTC also charges that the company has added surprise shipping and handling fees to the costs of products, misrepresented that ordering is “risk free,” used deceptive emails as part of its marketing campaign, and misrepresented its policies on selling users’ personal data to third parties prior to January 2019. Many consumers affected by these practices are older and lower-income.

Type of Action
Federal
Last Updated
FTC Matter/File Number
182 3145
Case Status
Closed

Next-Gen, Inc.

In 2019, the operators of a sweepstakes scam that appeared to target seniors agreed to forfeit a record $30 million in cash and assets and will be permanently banned from the prize promotion business under a settlement with the Federal Trade Commission. In July 2022, the FTC returned almost $25 million to consumers worldwide who were defrauded by the scheme.

Type of Action
Federal
Last Updated
FTC Matter/File Number
172 3133
X180023

Mail Tree Inc

As a result of a June 2024 settlement with the FTC, the operators of a sweepstakes scam that cost consumers millions agreed to settlements that permanently ban them from operating sweepstakes or making claims to consumers about prizes they have won or may win. The FTC first filed its complaint against Matthew Pisoni, Marcus Pradel and John Leon in 2015, alleging that they helped operate a sprawling sweepstakes operation that took more than $28 million from consumers throughout the United States and other countries In August 2024, the Commission announced the settlement with another individual defendant in the case, Victor Ramirez.

Type of Action
Federal
Last Updated
FTC Matter/File Number
142 3068

FTC Action Halts Global Sweepstakes Scam

Date
At the request of the Federal Trade Commission, a federal court has temporarily halted a sweepstakes operation based in Fort Lauderdale that took more than $28 million from consumers throughout the...