News & Views - 02/09/98

Monday, February 9, 1998

YOU MAY HAVE LOST

Recently, Florida Attorney General Bob Butterworth announced that his office has filed suit against American Family Publishers and its celebrity spokesmen, Ed McMahon and Dick Clark. The civil complaint charges the defendants with deceiving consumers in order to sell magazine subscriptions and seeks penalties under the state's Deceptive and Unfair Trade Practices Act. It also seeks to ban various tactics used by the company to increase magazine sales.

"In their zeal to sell magazines, American Family Publishers and its high-profile pitchmen have misled millions of consumers," Butterworth said. "They have clearly stepped over the line from advertising hype to unlawful deception." The Attorney General said that some consumers actually traveled long distances to the company's mailing address in Tampa to claim their prizes only to discover that they hadn't won. "Just imagine the heartbreak these people felt, not to mention the personal expenses they incurred," he said.

The complaint alleges that the defendants:

Falsely suggested that a recipient must purchase one or more magazine subscriptions to win the $11 million prize;
Falsely suggested that a recipient is a part of a select group vying for a prize or is one of only two recipients in Florida with the winning number;
Falsely suggested that a recipient need only respond within five days and before an alternate winner responds in order to claim the $11 million prize; and,
Required those who want to enter the sweepstakes without purchasing magazines to follow a more "circuitous and cumbersome" procedure than those who purchase magazines.

There are rules and regulations that sweepstakes and contests are required to follow. You can find out more about your rights in a sweepstakes by reading the NFIC Sweepstakes Tips or the FTC's Prize Offers brochure.

NOTE: The Attorney General files a complaint when he has "reason to believe" that the law has been or is being violated, and it appears that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.

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