Friday, March 20, 1998

YOU MAY BE A WINNER

The defendants were accused of:

• Falsely suggesting that a recipient must purchase one or more magazine subscriptions to win a prize;

• Falsely suggesting that a recipient is part of a select group vying for a prize or is one of only two recipients with the winning number;

• Falsely suggesting that a recipient need only respond within a certain number of days and before an alternate winner responds in order to claim the a prize;

• And, requiring those who want to enter the sweepstakes without purchasing magazines to follow a more "circuitous and cumbersome" procedure than those who purchase magazines.

Some consumers were so convinced that they had won, when that was not the case, that they actually traveled from out of state to the company's headquarters in Florida to claim their prizes.

To resolve suits filed by Alabama, Arizona, Arkansas, Hawaii, Idaho, Illinois, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, Wisconsin and the District of Columbia, AFP has agreed that future mailings will:

• Only tell consumers that they are winners if they have in fact won;

• Only tell consumers that they are among a select group that has a chance of winning a prize if the odds of winning are disclosed;

• Tell consumers that no purchase is necessary;

• Clearly explain how to enter the sweepstakes without a purchase;

• Make it clear to consumers who order magazines on an installment payment plan how much is due each month;

• Not imply that consumers have a better chance of winning if they purchased magazines.

AFP is also required to pay $1.25 million to the states.

The agreement does not settle charges filed by Connecticut, Florida and Indiana. According to Connecticut Attorney General Blumenthal, "We're not joining the settlement because it does not sufficiently protect consumers or recognize the outrageous and deceptive nature of the most recent mailings by American Family Publishers. We intend to pursue our own action vigorously and expeditiously." The settlement also does not apply to several private lawsuits filed against AFP.

Remember, IF YOU HAVE TO PAY, THEN DON'T PLAY. You cannot be required to pay any fees or purchase any product to enter a prize promotion. There must be a way to enter without making a purchase. That's why all of those prize promotions that you see say, "no purchase necessary." Check out the FTC's "Prize Promotion" brochure for more information on your rights. You should also read NFIC's tips on sweepstakes.

If you have any questions or would like to report an incident, call NCL's National Fraud Information Center at 1-800-876-7060 or use one of our online forms.

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