Publishers Clearing House

Extensive Case 1. A recent newspaper contained the following story: Sweepstakes Company Agrees to Pay Up Publishers Clearing House agreed to pay $34 million in a deal with 26 states to settle allegations the sweepstakes company employed deceptive marketing practices. The $34 million will cover customer refunds, legal expenses, and administrative cost to the states. Each state’s share has yet to be determined. In the lawsuits, state attorneys general accused Publishers Clearing House of deceptive marketing for its sweepstakes promotions. The suit alleged that the company was misleading consumers by making them believe they had won prizes or would win if they bought magazines from Publishers Clearing House. As part of the settlement, the company will no longer use phrases like “guaranteed winner.” “This will in fact revolutionize the sweepstakes industry,” Michigan Attorney General Jennifer Granholm stated. “We listened to the states’ concerns and have agreed to responsive and significant changes that will make our promotions the clearest, most reliable and trustworthy in the industry,” said Robin Smith, chairman and CEO of the Port Washington, N.Y.–based company. Publishers Clearing House reached a $34 million settlement last August with 26 states and the District of Columbia. The states involved in the latest settlement are: Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, West Virginia, and Wisconsin.

Based on this information do you believe Publishers Clearing House committed fraud? Why or why not?

Complete Case Study 2: Sweepstakes-Legitimate or Deceptive? at the end of Chapter 1 in your textbook. This case deals with Publishers Clearing House and deceptive marketing practices.

Considering Case Study 2, address the following question in the form of a short essay:

Based on the information presented, do you believe Publishers Clearing House committed fraud? Why or why not?

Your essay must be at least 200-300 words in length. If using outside sources all source citation should adhere to the guidelines of the APA style guide.