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FTC Action Leads to Sweepstakes Ban For Three Individuals Who Ran Massive Scheme That Cost Consumers Millions
Publishers Clearing House, LLC (PCH), FTC v.
As a result of a Federal Trade Commission lawsuit, Publishers Clearing House (PCH) has agreed to a proposed court order will require it to pay $18.5 million to consumers who spent money and wasted their time, and make substantial changes to how it conducts business online.
In a complaint against PCH, the FTC charges that the company uses “dark patterns” to mislead consumers about how to enter the company’s well-known sweepstakes drawings and made them believe that a purchase is necessary to win or would increase their chances of winning, and that their sweepstakes entries are incomplete even when they are not. The FTC also charges that the company has added surprise shipping and handling fees to the costs of products, misrepresented that ordering is “risk free,” used deceptive emails as part of its marketing campaign, and misrepresented its policies on selling users’ personal data to third parties prior to January 2019. Many consumers affected by these practices are older and lower-income.
U.S. Federal Trade Commission Returning Almost $25 Million to Consumers Worldwide Who Were Defrauded by Next-Gen Sweepstakes Scheme
Next-Gen, Inc.
In 2019, the operators of a sweepstakes scam that appeared to target seniors agreed to forfeit a record $30 million in cash and assets and will be permanently banned from the prize promotion business under a settlement with the Federal Trade Commission. In July 2022, the FTC returned almost $25 million to consumers worldwide who were defrauded by the scheme.
FTC Adds Charges Against Auto Marketer For Deceptive “Prize” Mailers
Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission
FTC Report to Congress Details Fraud Reports from Older Consumers
Operators of Sweepstakes Scam Will Forfeit $30 Million to Settle FTC Charges
FTC Details Efforts to Protect Older Consumers in Report to Congress
Genius Technologies, LLC
FTC Challenges Schemes That Target or Affect Senior Citizens
FTC Obtains Court Order Against Fake Prize Scheme Operation
Terry Somenzi, individually and as an officer of International Advisory Services, Inc., et al.
FTC Obtains Court Order Against Fake Prize Scheme Defendant
FTC Charges Fake Prize Scheme Operators With Fraud
Mail Tree Inc
As a result of a June 2024 settlement with the FTC, the operators of a sweepstakes scam that cost consumers millions agreed to settlements that permanently ban them from operating sweepstakes or making claims to consumers about prizes they have won or may win. The FTC first filed its complaint against Matthew Pisoni, Marcus Pradel and John Leon in 2015, alleging that they helped operate a sprawling sweepstakes operation that took more than $28 million from consumers throughout the United States and other countries In August 2024, the Commission announced the settlement with another individual defendant in the case, Victor Ramirez.
FTC Action Halts Global Sweepstakes Scam
FTC Obtains $9.5 Million Judgment Against Sweepstakes Promoter for Contempt
Sweepstakes Scammer Banned from Prize Promotion Industry
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