FTC Refunds $18.5M to Consumers Allegedly Harmed by Publishers Clearing House



Key Takeaways

  • The Federal Trade Commission is sending a total of $18.5 million to 281,724 consumers affected by allegedly misleading claims by sweepstakes company Publishers Clearing House.
  • The shopping and sweepstakes company was said by the FTC to have sent consumers misleading emails, leading many of them to purchase products from the company.
  • The FTC said older and lower-income consumers especially were deceived into purchasing products to enter a Publishers Clearing House sweepstakes or to boost their chances of winning.

The Federal Trade Commission (FTC) is sending $18.5 million worth of checks to consumers who were affected by allegedly misleading claims made by sweepstakes company Publishers Clearing House.

The FTC on Wednesday said it is refunding 281,724 affected consumers who ordered items from Publishers Clearing House after receiving a deceptive email from the company.

FTC Points to Allegedly Misleading Consumer Emails

Publishers Clearing House, which offers multi-channel shopping and “free-to-play, chance-to-win” sweepstakes, made misleading claims in emails to consumers, the FTC alleged, including:

  • Deceiving older and lower-income consumers into purchasing products to enter a sweepstakes or to increase their chances of winning.
  • Sending deceptive emails that led consumers to believe the email was related to official documents, like tax forms.
  • Misrepresenting ordering from Publishers Clearing House as “risk-free,” even though consumers who wanted refunds had to return products at their own expense.

“The refund checks being sent out now by the FTC were from a settlement reached between PCH and the FTC in June of 2023,” Chris Irving, vice president of consumer affairs at Publishers Clearing House, told Investopedia in an email. “While we disagreed with the FTC’s assertions at the time, we were glad to have resolved the matter and move forward.”

Publishers Clearing House filed for Chapter 11 bankruptcy earlier this month.

Update, April 30, 2025: This article has been updated to include a comment from Publishers Clearing House.



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