Publishers Clearing House (PCH) has reached an $18.5 million settlement with the Federal Trade Commission (FTC) to resolve allegations that it used "dark patterns" and deceptive marketing to trick consumers. The lawsuit alleged that PCH misled people into believing they had to buy products to enter or increase their chances of winning their famous sweepstakes. Furthermore, the FTC claimed that PCH added surprise shipping and handling fees, and sent deceptive emails with subject lines that looked like official government or tax documents. While PCH agreed to overhaul its sales processes, they have already paid out nearly the entire settlement fund to over 280,000 victims.
Who Was Eligible for the PCH Settlement?
The settlement provided automatic refunds to a specific group of consumers targeted by PCH's misleading tactics.
- Affected Customers: Individuals who were misled into ordering products after clicking on deceptive PCH emails.
- Demographics: The FTC noted that many of the affected consumers were older or low-income individuals particularly vulnerable to sweepstakes scams.
- Timeframe: The settlement addressed deceptive practices and data collection that occurred prior to January 1, 2019, and extended through the 2023 litigation.
- No Claim Required: Unlike most settlements, eligible consumers did not have to file a claim form; the FTC issued checks directly based on PCH’s customer records.
Final Compensation and Awards
The $18.5 million fund was used to provide direct restitution to a massive class of impacted consumers.
- Total Payouts: On April 30, 2025, the FTC announced that refund checks had been issued to 281,724 eligible customers.
- Average Refund: While individual amounts varied based on the products ordered, the total distribution exceeded $18 million in the first major wave of checks.
- Injunctive Relief: PCH was also required to delete all consumer data collected before 2019 and stop using deceptive "dark patterns" that hide the fact that no purchase is necessary to win.
Case Conclusion and Payout Status
This major scam settlement has reached its final distribution phase.
- Check Distribution: The primary wave of refund checks was mailed in late April 2025.
- Cashing Deadline: Most FTC refund checks must be cashed within 90 days of issuance. If you received a check in the April mailing, the window to deposit it closed in late July 2025.
- Status: The program is currently listed as Closed to new entries, as all eligible individuals were identified and paid through the FTC's automatic distribution process.
Other Recently Closed Scam Settlements
In addition to PCH, several other major deceptive marketing and scam-related settlements have recently closed:
- Brigit Refunds: The FTC sent more than $17 million to nearly 1.8 million consumers who were misled by deceptive cash advance promises; the PayPal distribution window ended in November 2024.
- Credit Karma "Pre-Approved" Settlement: Checks were sent in October 2024 to over 50,000 consumers who were tricked by false "pre-approved" credit offers.
- Vivint Smart Home: A settlement resolving allegations of deceptive sales practices officially closed its refund program in December 2024.
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