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FTC Distributes $18.5 Million in Refunds to Publishers Clearing House Customers

Refunds are being issued to over 281,000 consumers deceived by misleading emails and hidden fees, marking a significant enforcement action against deceptive marketing practices.

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Overview

  • The Federal Trade Commission is sending refund checks to 281,724 customers who were misled by Publishers Clearing House’s deceptive email marketing tactics.
  • The $18.5 million settlement stems from a 2023 lawsuit accusing PCH of using misleading subject lines and hidden fees to induce purchases, disproportionately affecting older and lower-income consumers.
  • Refund recipients are advised to cash their checks within 90 days and are reminded the FTC will never request payment or account information to claim refunds.
  • PCH emails falsely implied purchases were necessary to enter sweepstakes or improve winning odds, and surprise fees contradicted claims of 'risk-free' orders.
  • The settlement also requires PCH to overhaul its business practices, including clearer privacy policies and disclosures to prevent future consumer deception.