Consumer ProtectionSettled2023

Publishers Clearing House Pays $18.5 Million for Deceiving Elderly Consumers

PCH used dark patterns to deceive consumers — particularly older adults — into believing that purchasing products would increase their chances of winning sweepstakes prizes.

Key Facts

Company

Publishers Clearing House

Penalty / Settlement

$18.5 Million

Regulatory Agency

FTC

Status

Settled

The Full Story

The FTC alleged that Publishers Clearing House (PCH) used deceptive online design to mislead consumers — particularly older adults — into making purchases they didn't need. PCH's websites and emails created the strong impression that buying products would improve the consumer's chances of winning sweepstakes prizes, even though no purchase was necessary to enter.

The deceptive design was specifically targeted at vulnerable populations. Order pages prominently displayed sweepstakes entry information alongside product ordering, making it difficult to distinguish between entering the sweepstakes and making a purchase. "Buy now" buttons were presented more prominently than "free entry" options.

Older Americans were disproportionately affected, with some spending thousands of dollars on products they didn't want in the belief that it would help them win. The FTC found that PCH's practices constituted unfair and deceptive business practices.

Court Order / Regulatory Action

In 2023, PCH agreed to pay $18.5 million for consumer redress. The company was required to clearly and prominently disclose that no purchase is necessary to enter sweepstakes and to stop using dark patterns that blur the line between purchases and sweepstakes entries.

Outcome

$18.5 million in consumer refunds. Required clear disclosure that no purchase necessary.

Impact on Consumers

Refunds distributed to affected consumers. The case highlighted the vulnerability of elderly consumers to deceptive online practices.

Sources & References