On April 30, 2025, the Federal Trade Commission (FTC) announced that Publishers Clearing House (PCH) had agreed to pay $18.5 million to customers who were misled by the company’s false claims.
The FTC said that PCH targeted older and lower-income customers, misleading them into believing that they could not enter sweepstakes without purchasing products or that buying products would increase their chances of winning.
What Happened with Publishers Clearing House?
According to the FTC, PCH deceived its customers through:
- Misleading claims about sweepstakes entry and chances of winning
- Deceptive email subject lines
- Unfair shipping and handling fees
The $18.5 million settlement will be used to provide checks to 281,724 affected customers, and the checks will be sent within the next 90 days.
What Did Publishers Clearing House Say?
In a statement to USA TODAY, Chris Irving, the Vice President of Consumer & Legal Affairs at Publishers Clearing House, said that the settlement was reached between PCH and the FTC in 2023. While the company disagreed with the FTC’s claims, it is happy to have resolved the issue and move forward.
“We are glad to have resolved the matter and move forward continuing to do what we do best – provide consumers with fun entertainment and games powered by our famous chance to win,” Irving said.
Publishers Clearing House Files for Bankruptcy
PCH has faced financial difficulties recently. In early April 2025, the company filed for bankruptcy protection in New York. The company stated that it would use the bankruptcy process to streamline its operations and possibly explore selling its assets or finding a business partner to fund a long-term plan for its digital businesses.
Despite these challenges, PCH plans to continue its famous sweepstakes, which have been a key part of its operations for many years. CEO Andy Goldberg said in a statement to Reuters:
“Our world-renowned sweepstakes will continue to be a cornerstone of our experiences, and we intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business during and after this process to uphold the historic legacy of Publishers Clearing House.”
What Happens Next for Affected Consumers?
Customers who were misled by Publishers Clearing House can expect to receive their checks within the next 90 days as part of the settlement. This marks the end of a legal battle between the company and the FTC, though the company still faces financial uncertainty following its bankruptcy filing.
FAQs
How much is Publishers Clearing House paying in the settlement?
Publishers Clearing House has agreed to pay **$18.5 million** to customers who were harmed by misleading claims made by the company.
Who is eligible for the settlement?
**281,724 affected consumers** will receive checks as part of the settlement. These are customers who were misled into thinking they had to buy products to enter sweepstakes or increase their chances of winning.
When will the checks be sent?
Checks will be sent to eligible consumers within the next **90 days**, according to the FTC’s announcement.
Why did Publishers Clearing House agree to this settlement?
PCH settled to resolve allegations by the FTC that they misled consumers, particularly older and lower-income individuals, with false claims about sweepstakes participation and product purchases.
What is Publishers Clearing House’s current financial situation?
In April 2025, Publishers Clearing House filed for **bankruptcy protection** and plans to use the process to restructure its operations and explore asset sales or business partnerships.
