FTC sends $18 million in refunds to Publishers Clearing House customers

• 281,000+ consumers will receive refunds after FTC finds deceptive sweepstakes and sales tactics
• PCH targeted older and low-income Americans with misleading emails and order practices
• Refund checks must be cashed within 90 days; FTC urges consumers to watch for official mailings

The Federal Trade Commission (FTC) announced it is distributing more than $18 million in refunds to consumers misled by deceptive marketing tactics from Publishers Clearing House (PCH) — the company long known for its sweepstakes promotions.

The refunds come as part of a settlement reached after the FTC charged PCH with targeting older and lower-income consumers using misleading emails, order forms, and promotions that gave the false impression that purchasing products was necessary to enter or improve odds in sweepstakes.

Deceptive tactics, hidden fees

According to the FTC’s complaint, PCH sent emails with misleading subject lines, implying they were official communications, such as tax documents, to entice users to open and engage with them. Once inside, consumers were misled into believing that ordering products improved their chances of winning a sweepstakes prize — a practice prohibited under federal law.

The agency also accused PCH of adding deceptive shipping and handling charges and falsely claiming that purchases were “risk-free.” In reality, consumers had to return unwanted products at their own expense to obtain refunds.

“The FTC’s action sends a clear message that companies cannot manipulate vulnerable populations with false hope or misleading tactics,” the agency said in a statement.

Refunds now being distributed

As part of the settlement, 281,724 consumers will receive refund checks. Each refund goes to someone who clicked on a deceptive PCH email and made a purchase. The checks are being sent by Rust Consulting, the official refund administrator.

Consumers are urged to cash their checks within 90 days of issue. Anyone with questions can contact Rust Consulting at 888-516-0774 or email info@PCHRefunds.com.

PCH agrees to overhaul ecommerce practices

In addition to paying the $18.5 million settlement, Publishers Clearing House has agreed to significant changes in how it operates online, including clearer disclosures about sweepstakes rules, order terms, and refund policies.

The settlement is part of a broader FTC effort to crack down on deceptive marketing and protect older consumers, who are often targeted by companies using tactics that blur the lines between sales and prizes.