UNITED STATES OF AMERICA

Federal Trade Commission

WASHINGTON, D.C. 20580

Office of the Chair

Statement of Chair Lina M. Khan

Joined by Commissioner Rebecca Kelly Slaughter and

Commissioner Alvaro M. Bedoya

In the Matter of Publishers Clearing House

Commission File No. 1823145

June 26, 2023

Today the Commission announced an $18.5 million settlement with Publishers Clearing 

House (PCH), a sweepstakes marketing company, resolving allegations that it deployed 

deceptive marketing tactics that manipulated older consumers and others into making unwanted 

purchases.

Today’s action builds on previous efforts to crack down on companies that use illegal 

dark patterns to fuel digital deception and harm consumers.1 As more commerce has moved 

online, companies are increasingly able to layer on a host of sophisticated tricks more frequently 

and at a much larger scale than traditional brick-and-mortar retailers.2 Companies like PCH 

should not be able to pad their bottom lines by deploying labyrinth-like digital interfaces 

designed to trick consumers.

According to the complaint, Publishers Clearing House violated Section 5 of the FTC Act 

by tricking consumers into believing that purchasing merchandise from its website was necessary 

to enter the sweepstakes or to increase their chances of winning. Beyond burdening consumers 

with additional unnecessary steps, the complaint charges that PCH also misrepresented the cost 

of online orders, failed to disclose material additional costs—including substantial fees for 

shipping and handling—and misrepresented its policies on selling users’ personal data to third 

parties prior to January 2019.

1 See, e.g., Press Release, Fed. Trade Comm’n, Fortnite Video Game Maker Epic Games to Pay More Than Half a 

Billion Dollars over FTC Allegations of Privacy Violations and Unwanted Charges, https://www.ftc.gov/newsevents/news/press-releases/2022/12/fortnite-video-game-maker-epic-games-pay-more-half-billion-dollars-over-ftcallegations (alleging the use of dark patterns to trick consumers into making unwanted purchases in the video game 

Fortnite); Press Release, Fed. Trade Comm’n, FTC Action Against Vonage Results in $100 Million to Customers 

Trapped by Illegal Dark Patterns and Junk Fees When Trying to Cancel Service (Nov. 3, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/11/ftc-action-against-vonage-results-100-millioncustomers-trapped-illegal-dark-patterns-junk-fees-when-trying-cancel-service (alleging the use of dark patterns to 

make it difficult for consumers to cancel phone subscriptions); Press Release, Fed. Trade Comm’n, FTC Takes 

Action to Stop Credit Karma From Tricking Consumers With Allegedly False “Pre-Approved” Credit Offers (Sept. 

1, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/09/ftc-takes-action-stop-credit-karma-trickingconsumers-allegedly-false-pre-approved-credit-offers (alleging the use of dark patterns to misrepresent that 

consumers were “pre-approved” for credit card offers that, in many cases, they were not qualified for).

2 FTC, BRINGING DARK PATTERNS TO LIGHT (2022), https://www.ftc.gov/reports/bringing-dark-patterns-light.
More broadly, our recent enforcement work demonstrates that direct financial loss isn’t 

the only way consumers suffer as a result of unfair or deceptive business practices. For example, 

this action is the third recent case in which we’ve obtained compensation for consumers’ wasted 

time—a remedy we first obtained in Credit Karma,3and then again in LCA Vision.

4

In recent 

actions we have also secured redress for small businesses affected by data security failures,5for 

consumers whose health privacy was compromised,6and for car-buyers who were hit with higher 

charges because of their race or national origin.7 The FTC recognizes the many ways that unfair 

or deceptive practices can injure people, and we will continue to pursue remedies that seek to 

make people whole for the injuries they suffer from illegal business practices.

8

Many thanks to the Bureau of Consumer Protection’s Division of Marketing Practices for 

their thorough work on this matter.

***

3 See Complaint, In re Credit Karma, LLC, FTC File No. 2023138, 

https://www.ftc.gov/system/files/ftc_gov/pdf/CK%20Complaint%209-1-22%20%28Redacted%29.pdf (alleging that 

consumers wasted significant time in applying for the advertised credit offers); see also Press Release, Fed. Trade 

Comm’n, FTC Takes Action to Stop Credit Karma From Tricking Consumers With Allegedly False “Pre-Approved” 

Credit Offers (Sept. 1, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/09/ftc-takes-action-stopcredit-karma-tricking-consumers-allegedly-false-pre-approved-credit-offers.

4 See Complaint, In re LCA-Vision, FTC File No. 1923157, 

https://www.ftc.gov/system/files/ftc_gov/pdf/complaint_lca_vision.pdf (alleging that consumers wasted time in 

sitting for consultations for Lasik eye surgery services); see also Press Release, Fed. Trade Comm’n, FTC Order 

Requires LasikPlus to Pay for its Bait-and-Switch Eye Surgery Ads (Jan. 19, 2023), https://www.ftc.gov/newsevents/news/press-releases/2023/01/ftc-order-requires-lasikplus-pay-its-bait-switch-eye-surgery-ads.

5 Fed. Trade Comm’n, Press Release, FTC Takes Action Against CafePress for Data Breach Cover Up (Mar. 15, 

2022), https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-takes-action-against-cafepress-databreach-cover.

6 Fed. Trade Comm’n, Press Release, FTC to Ban BetterHelp from Revealing Consumers’ Data, Including Sensitive 

Mental Health Information, to Facebook and Others for Targeted Advertising (Mar. 2, 2023), 

https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-ban-betterhelp-revealing-consumers-dataincluding-sensitive-mental-health-information-facebook.

7 Fed. Trade Comm’n, Press Release, FTC Sends More than $3.3 Million to Consumers Harmed by Passport Auto’s 

Illegal Junk Fees and Discriminatory Practices (May 16, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/05/ftc-sends-more-33-million-consumers-harmed-passport-autos-illegal-junk-fees-discriminatorypractices; Fed. Trade Comm’n, Press Release, FTC Returns More Than $9.8 Million To Consumers Harmed by 

Napleton Auto’s Junk Fees and Discriminatory Practices (Nov. 14, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/11/ftc-returns-more-98-million-consumers-harmed-napleton-autos-junk-feesdiscriminatory-practices.

8 Our ability to secure redress for American consumers was severely curtailed by the Supreme Court’s decision in 

AMG. While we continue to deploy every tool to ensure redress for harmed consumers, it is urgent that Congress 

restore our authority under Section 13(b) of the FTC Act.