Finally, they're winners

By JOE WILLIAMS

August 23, 2000 Web posted at: 10:41 AM EDT (1441 GMT)

NEW YORK (The New York Daily News) -- Sweepstakes giant Publishers Clearing House agreed yesterday to pay $18 million to consumers who were duped into buying magazines in hopes of becoming millionaires.

The settlement includes more than $1.58 million in refunds for 1,600 New Yorkers who state Attorney General Eliot Spitzer said were taken by the company's "tricks and gimmicks."

"They told me to read the fine print," said Henry Botwinick, a Brooklyn old timer who has bought magazines from Publishers Clearing House for 30 years, hoping he would hit the jackpot someday.

"Superman could see through walls, and even he couldn't read the fine print on the letter they sent me."

Known for its white van and Prize Patrol that delivers seven-figure checks to gleeful winners, Publisher's Clearing House still billed itself on its voice mail yesterday as "The house where dreams come true."

As part of the settlement, the company agreed not to use phrases such as "You are a winner" in mailings unless consumers are prominently informed of the odds of winning.

To qualify for the refunds, Spitzer said, consumers must have spent at least $2,500 in any year between 1997 and 1999.

State consumer fraud investigators said some New Yorkers spent as much as $10,000 on magazines and other gift items in a year, viewing the payout as an investment that one day would reap millions.The investigators said many of those duped were senior citizens who spent their life savings on magazines they didn't want or need.

One woman, they said, skipped out on a relative's funeral because she was led to believe she should be at home at a certain date and time to accept her prize. Another man, investigators said, was led to believe he had won after the company asked him to pick his meal for the banquet to be held in his honor at award time. The gimmicks led to additional magazine sales, authorities said.

Botwinick estimated he spent thousands of dollars on magazines. He stopped after receiving a letter telling him he had won, only to be left waiting for a check that supposedly was sent priority mail.

"Five months later, I called them and said, 'Is this what you mean by priority mail?'" he recalled.

Company officials admitted no wrongdoing in the settlement with 24 states and the District of Columbia.

"Publishers Clearing House is dedicated to making sure sweepstakes are fun," said Deborah Holland, senior vice president of the direct marketing company, based in Port Washington, L.I.

She said the company was changing its mailings voluntarily to "restore the public's confidence in legitimate free-by-mail sweepstakes like ours."

Terms of the settlement with Publishers Clearing House:

*Company must pay $18 million to 23 states.

*About 1,600 New Yorkers will share nearly $1.6 million.

*Company must keep a list of people who don't want to be on mailing list.

*Mailings must include facts box disclosing odds of winning. Disclaimers must say, "Buying won't help you win" and "You haven't won yet."

*Company may not use language such as "you are a winner."

*Company may not send fake personalized checks.

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