Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 1 of 53 PageID #: 1 

UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF NEW YORK 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

PUBLISHERS CLEARING HOUSE LLC, 

a New York limited liability company, 

Defendant. 

Case No: 23-cv-4735

COMPLAINT FOR PERMANENT 

INJUNCTION, MONETARY RELIEF, 

AND OTHER RELIEF 

Plaintiff, the Federal Trade Commission (“FTC” or the “Commission”), for its Complaint 

alleges: 

1. Plaintiff brings this action under Sections 13(b) and 19 of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b), 57b, and Section 7(a) of the Controlling the 

Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CAN-SPAM Act”), 15 

U.S.C. § 7706(a), which authorizes Plaintiff to seek, and the Court to order, permanent injunctive 

relief, monetary relief, and other relief for Defendant’s acts or practices in violation of Section 

5(a) of the FTC Act, 15 U.S.C. § 45(a) and the CAN-SPAM Act, 15 U.S.C. §§ 7701-7713. 

SUMMARY OF CASE 

2. Although Publishers Clearing House LLC (“PCH” or “the Company”) is required 

to allow consumers to participate in its sweepstakes promotions without purchasing a product, 

PCH uses deceptive and manipulative statements and user interface designs (sometimes referred 

to as “dark patterns”) to deceive consumers into believing that they must order products before 

they can enter a sweepstakes or that ordering products increases their odds of winning a 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 2 of 53 PageID #: 2 

sweepstakes. 

3. PCH uses the prospect of winning lucrative sweepstakes prizes to lure consumers 

into repeatedly visiting its e-commerce website and buying products. 

4. PCH targets older and lower-income consumers: the average age of PCH’s “core 

consumer” on its e-commerce website is 66 years old and 54% of its “core consumers” earn less 

than $50,000. According to the Census Bureau, the median household income in 2020 was 

$67,621. PCH’s own survey results show that 71% of its core e-commerce customers believe 

that “there is no such thing as free money.” PCH capitalizes on this fact by misleading them into 

believing that they must place an order to buy products to enter a sweepstakes or that ordering 

will increase their odds of winning. 

5. When consumers first navigate to the homepage on PCH.com, they are presented 

with an “Official Entry Form” or “Official Entry Registration Form.” PCH misrepresents that 

consumers who fill out this form and hit “Submit Entry!,” “WIN IT!,” or “Win for Life!” (the 

“call-to-action button”) will be then entered into a sweepstakes. PCH does not enter consumers 

into a sweepstakes when they enter their personal information and hit the call-to-action button. 

6. Instead of entering consumers into the sweepstakes after they have hit the call-toaction button, PCH takes them to its e-commerce site where consumers must click through 

several webpages of advertisements for products, including magazine subscriptions. It is only 

after scrolling and clicking through several webpages of advertisements that consumers are 

presented with another call-to-action button where they can finally submit their sweepstakes 

entry. After those consumers enter the sweepstakes, PCH subsequently sends them emails that 

falsely represent that they must complete another step to claim a prize number on the “winner 

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selection list” or be eligible to win the sweepstakes. Some emails misrepresent that if consumers 

do not act in response to the emails, they will be ineligible to win or disqualified from winning 

the sweepstakes. 

7. However, the links in those emails do not send consumers to a true “final” or 

additional step of some kind, but direct consumers to PCH’s e-commerce site where they must 

again navigate through a long series of PCH webpages containing advertisements for products. 

Throughout these marketing emails and webpages, PCH uses deceptive statements to mislead 

consumers into believing that purchasing a product is required to enter a sweepstakes or that 

purchasing a product will increase the odds of winning a sweepstakes prize. PCH also employs 

dark patterns throughout the consumer’s experience by, among other things: linking and 

conflating “ordering” products and “entering” the sweepstakes through the use of trick wording 

and visual interference; placing disclosures in small and light font and in places where a 

consumer is unlikely to see them; bombarding consumers with emails that pressure them to take 

immediate action by clicking on the email or purportedly risk losing the opportunity to enter or 

win the sweepstakes; and making it difficult for consumers to enter the sweepstakes without an 

order. 

8. Additionally, PCH has sent millions of emails that reference fictitious forms and 

documents beginning with a “W” followed by a hyphen and number or a “W” followed by a 

number, the same naming convention that the Internal Revenue Service uses on federal tax forms 

such as a W-2 (Wage and Tax Earnings Form) or W2-G (Certain Gambling Winnings Form), to 

trick consumers into opening and reading the emails. These fabricated forms and documents 

feature prominently in the subject lines of countless PCH emails but when consumers open the 

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emails, the body of the emails contains no further reference to any such forms or documents. 

Such subject lines are deceptive and serve as a device to provoke consumers to open emails and 

view PCH marketing materials. 

9. PCH also conceals the total cost of orders until after the consumer has incurred a 

financial obligation to PCH. PCH’s undisclosed shipping and handling charges amount, on 

average, to 41% of the costs of the merchandise ordered. 

10. PCH falsely represents that ordering is “risk free” when, in fact, consumers who 

want to return merchandise to PCH must do so at their own expense. 

11. Finally, until approximately January 2019, when the Company learned that the 

FTC was investigating its privacy practices, PCH’s formal privacy policy falsely stated that PCH 

did not sell or rent consumer data. 

12. The above-referenced conduct constitutes multiple violations of the FTC Act and 

the CAN-SPAM Act, as detailed further herein. 

JURISDICTION AND VENUE 

13. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

and 1345. 

14. Venue is proper in this District under 28 U.S.C. § 1391(b), (c), and (d), and 15 

U.S.C. § 53(b). 

PLAINTIFF 

15. The FTC is an independent agency of the United States Government created by 

statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), 

which prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC also 

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enforces the CAN-SPAM Act, 15 U.S.C. §§ 7701-7713, as if a statutory violation of the CANSPAM Act “were an unfair or deceptive act or practice proscribed under Section 18(a)(1)(B) of 

the [FTC Act] (15 U.S.C. 57a(a)(1)(B)).” 15 U.S.C. § 7706(a). 

DEFENDANT 

16. Defendant Publishers Clearing House LLC, also doing business as Liquid 

Wireless, Liquid, and PCH Media, is a New York limited liability company with its principal 

place of business at 300 Jericho Quadrangle in Jericho, New York, 11753. PCH transacts or has 

transacted business in this District and throughout the United States. At all times relevant to this 

Complaint, acting alone or in concert with others, PCH has advertised and marketed sweepstakes 

entry opportunities to consumers throughout the United States. 

COMMERCE 

17. At all times relevant to this Complaint, PCH has maintained a substantial course 

of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 15 

U.S.C. § 44. 

PCH’S BUSINESS ACTIVITIES 

18. PCH was founded in 1953 in Port Washington, New York as a seller of 

discounted magazine subscriptions. In 1967, PCH initiated a series of sweepstakes promotions 

that marketed its magazine offerings. In 1985, PCH expanded into merchandise offerings, which 

now account for the majority of its sales. 

19. Since at least 1967, PCH has advertised its sweepstakes promotions to consumers 

throughout the United States and Canada via direct mail, radio advertisements, television 

commercials, digital advertising, and social media. 

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20. Once known for its prolific direct mail advertising program, PCH now has a 

substantial online sweepstakes advertising program as well. According to PCH, PCH.com 

attracts roughly 40 million unique visitors each month. 

21. PCH generates revenue of approximately $1 billion in product sales per year. 

PCH’S HISTORY OF DECEPTIVE PRACTICES 

22. Since the early 1990s, PCH has defended against numerous public and private 

lawsuits related to its business practices. Additionally, PCH’s sweepstakes marketing practices 

have been the subject of frequent criticism and scrutiny from Congress, federal and state 

regulators, consumer advocates, and the press. 

23. In 1992, fourteen states sued PCH for misleading people into believing that they 

could increase their odds of winning a sweepstakes by purchasing items from PCH and that they 

were sweepstakes finalists. In 1994, PCH settled with the states for $490,000. 

24. In 1998, a congressional committee held a series of hearings about deceptive 

mailings and sweepstakes promotions. See S. Rep. No. 106-102, at 1-5 (1999). Senator Susan 

Collins’ opening statement at the hearings explained that: “these hearings will explore whether . . 

. ‘Government look-alike’ mailings, and the combination of large headlines and small 

disclaimers are unfair practices that deceive consumers into making excessive, unneeded 

purchases.” Deceptive Mailings and Sweepstakes Promotions: Hearings Before the Permanent 

Subcomm. on Investigations of the S. Comm. on Governmental Affairs, 106th Cong., S. Hrg. 

106-71, at 2 (Mar. 8-9, 1999). She continued: “Time and time again, family members . . . have 

described sweepstakes companies bombarding elderly relatives with repeated mailings, each one 

giving the false impression that purchases will bring the consumer closer to winning the grand 

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prize.” Id. 

25. The 1999 Committee Report noted that: “[w]hile most sweepstakes are legitimate 

. . . marketing devices, some of these promotions can be used to defraud and deceive 

consumers.” S. Rep. No. 106-102, at 3-4. The report singled out “[f]our major sweepstakes 

firms[,]” including PCH, for which “there is evidence that a significant number of individuals 

make excessive purchases in response to these mailings.” Id. at 14. 

26. During the hearings, elderly sweepstakes contestants and their children described 

how they and their family members routinely “believed that purchases increased their chances of 

winning.” Id. “Evidence at the hearing showed that some consumers had spent tens of 

thousands of dollars, depleted savings, and had been forced to seek employment after entering 

retirement.” Id. State attorneys general and AARP officials testified that some direct mail 

companies used “misleading and confusing marketing tactics, including small type, which is 

often overlooked by consumers with poor eyesight[,]” and used “mailers [that] mimic 

government documents” to deceive consumers. Id. 

27. One area of particular focus was PCH marketing materials that highlighted 

fictional conversations about individual consumers and their prospects of winning the 

sweepstakes. The Company was repeatedly asked about a sweepstakes mailing sent to nine 

million people that quoted one such purported conversation between PCH personnel. In this 

conversation, PCH staff appeared to be singling out the recipients of these mailers by name for 

favorable treatment in connection with winning a sweepstakes. Id. The Company’s 

representative defended the Company’s practice, claiming that the quoted conversations were 

“dramatizations” and that “consumers understand dramatizations.” Id. Senator Carl Levin 

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rejected that characterization, stating “[t]hat conversation, you acknowledge, did not take place. 

Therefore, you told a customer that a specific conversation regarding him occurred which did not 

occur. You testified ... that, in your judgment that that letter is perfectly fine. That letter is 

perfectly a lie. It is perfectly false. It is perfectly misleading. It is perfectly deceptive.” Id. 

28. Moreover, Senator Collins questioned PCH’s representative at length about 

several other matters, including “language [that] implies a connection between ordering and 

winning” in sweepstakes mailers. Id. Senator Arlen Specter noted that PCH’s “practices . . . are 

conclusively deceptive on their face, beyond any question” and said, “ I would ask you to . . . see 

if your firm wouldn’t be doing something to clear up the record without waiting for legislation . . 

. I know you are trying to defend your company here, but your answers are really very, very 

defensive, and don’t really ring accurately, at least in my judgment.” Id. While questioning the 

Company, Senator John Edwards noted that: “it is clear, any normal person would look at these 

mailings . . . and their response would be that they are intended to fool people, to mislead them . . 

. we have to deal with this problem.” Id. 

29. Following these hearings and subsequent legislative negotiations, President 

Clinton signed the Deceptive Mail Prevention and Enforcement Act (“DMPE Act”), 39 U.S.C. § 

3001, into law on December 13, 1999. The DMPE Act mandates that sweepstakes mailers must 

clearly and conspicuously disclose “on the order or entry form, that no purchase is necessary to 

enter [the] sweepstakes[,]” and “that a purchase will not improve an individual’s chances of 

winning” a sweepstakes. 39 U.S.C. § 3001(k)(3)(A)(ii). The DMPE Act also strengthened 

protections around deception related to government look-alike documents sent via mail. See id. 

§ 3001(h)(1) (barring “solicitation by a nongovernmental entity . . . which could reasonably be 

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interpreted or construed as implying any Federal Government connection[.]”). 

30. As the congressional inquiry and legislative process that resulted in the DMPE 

Act unfolded, PCH launched its first website. Although the Company continues to send direct 

mailers, its online presence has increased dramatically since 1999. 

31. In the same year, PCH resolved a nationwide class-action lawsuit related to its 

deceptive marketing practices. See Vollmer v. Publishers Clearing House, No. 99-cv-434 (S.D. 

Ill.). The plaintiffs alleged that PCH duped consumers into believing that purchasing items from 

PCH would increase their chances of winning cash or other prizes. See Second Amended Class 

Action Compl., Vollmer v. Publishers Clearing House, No. 99-cv-434 (S.D. Ill. June 21, 1999), 

ECF No. 4 at 1-4. PCH reached a $10 million settlement with the class less than three months 

after the filing of the complaint. See Order Approving Settlement, Vollmer v. Publishers 

Clearing House, No. 99-cv-434 (S.D. Ill. Aug. 3, 1999), ECF No. 32 at 1-5. The Company 

pledged to revise its business practices to ensure that consumers understood its promotions and, 

in particular, that ordering is not necessary to win a sweepstakes prize. Id. at 10. 

32. In 2000, 23 states sued PCH for sending mailers that misled consumers into 

believing that they were close to winning a prize and that ordering magazines and other 

merchandise would increase their odds of winning. The Company reached a settlement in which 

PCH agreed to pay over $18 million, including over $15 million in restitution to consumers. 

33. In 2001, 26 states sued PCH for sending mailers that misled consumers into 

believing they were close to winning a prize and that ordering magazines and other merchandise 

would increase their odds of winning, allegations that were nearly identical to the lawsuit from 

the prior year. The allegations resulted in a second settlement that required PCH to pay $34 

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million, including $1 million in civil penalties, and to apologize for the injury it caused 

consumers. 

34. The 2001 consent decree between PCH and 26 states included provisions like the 

following: 

 “PCH shall not Represent that a purchase is necessary to enter or win a Sweepstakes or 

that ordering improves the Recipient’s likelihood of winning.” Consent Judgment, 

Colorado v. Publishers Clearing House, No. 00-CV-326 (Aug. 1, 2001). 

 “PCH shall not Represent that a Recipient’s failure to respond to a communication will or 

may result in the forfeiture or other loss of any previous valid entry or loss of any Prize to 

which the Recipient is or may be entitled, or Misrepresent that failure to timely return an 

entry will or may result in a loss of opportunity to enter the same Sweepstakes by 

response to another mailing or by an alternative method of entry.” Id. at 16. 

 PCH shall “at a minimum, Clearly and Conspicuously disclose in all Sweepstakes 

Communications including opportunities to enter and Order messages to the effect that no 

purchase is necessary to enter and that a purchase will not improve a person’s chances of 

winning. ...” Id. at 21. 

 PCH shall not use “any term that Misrepresents that the Recipient has an enhanced status 

or position within a Sweepstakes superior to other timely entrants to describe any such 

status or position.” Id. at 10. 

 “PCH shall not Misrepresent . . . the deadline for any entry or action regarding an entry in 

a sweepstakes or the need for promptness in responding to an offer of a sweepstakes 

entry opportunity.” Id. at 25. 

35. In 2010, 33 states and the District of Columbia filed another lawsuit, arguing that 

PCH’s allegedly deceptive marketing practices and false promises of sweepstakes winnings 

violated prior consent judgments. PCH agreed to resolve this action by paying $3.5 million and 

entering into additional consent judgments that included an expanded list of prohibited marketing 

practices and affirmative obligations. 

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36. In a supplemental consent judgment with the 26 settling states from the 2001 

multistate action, PCH agreed to several provisions related to so-called “Order-Entry” forms, or 

forms that allowed consumers to both order a product and enter the sweepstakes, requiring PCH 

to clearly divide the provisions relating to ordering and entering, and to exclude any orderrelated information from the entry section. 

37. In 2013, the United States Senate Special Committee on Aging conducted an 

analysis of PCH’s sweepstakes marketing practices online, which culminated in a 259-page 

report, Pushing the Envelope: Publishers Clearing House in the New Era of Direct Marketing, S. 

Rep. No. 113-153 (2014) (“Special Committee Report”), highlighting “ways in which it appears 

PCH may be communicating in a manner prohibited by the Deceptive Mail Prevention and 

Enforcement Act and/or the agreements with state Attorneys General.” Special Committee 

Report at 4. By this time, PCH’s “online program [was] ... many times larger than offline in 

terms of outgoing solicitations.” Id. at 3. 

38. Unlike the prior congressional inquiry into sweepstakes promotions as a general 

matter, this inquiry focused specifically on PCH’s marketing practices, whether PCH was 

violating the DMPE Act, and whether PCH was violating any of its consent decrees with the 

states. 

39. The Special Committee Report drew attention to numerous online pop-up 

messages that consumers who wished to enter a PCH sweepstakes saw at the time, such as: 

“Order History Review: No Order Ever Placed” and “WAIT! We See That You ARE NOT 

PLACING AN ORDER!” Id. at 11. The report concluded by expressing concern that such 

representations may mislead or confuse a consumer about the relationship between purchasing 

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and winning a prize. Id. at 24. 

40. The Special Committee Report also noted that, despite provisions in the state 

Consent Decrees, PCH communications “contain[ed] messages that may mislead reasonable 

consumers into believing that their previous, valid entries [were] at risk of forfeiture if the 

consumers [did] not respond to additional PCH solicitations.” Id. at 5. 

41. Despite this extensive history of law enforcement actions, litigation, and scrutiny 

from Congress, PCH continues to employ many of the very same techniques and messaging that 

it has used for decades to deceive consumers into believing that there is a relationship between 

ordering a product and entering or winning a PCH sweepstakes. PCH reinforces this deception 

by driving consumers to its e-commerce website through email solicitations referencing 

fictitious, official-sounding documents and threats that failure to respond to such solicitations 

will result in a loss of eligibility to win a sweepstakes. 

PCH’S EMAILS AND E-COMMERCE WEBSITE 

PCH’s Official Entry Registration Form 

42. When consumers visit PCH.com, PCH displays an “Official Entry Form” or 

“Official Entry Registration Form” (collectively “Official Entry Form”), examples of which are 

shown in Figures 1 and 2, below: 

12 
It"■ FREE • Enter Now c.tnpi•• his oadlil En-,R,_.aloft l'Wn e,, N 

O!adine ~ tt1 ..,'" cna,1 Sein •o ~°"""' ce..,__ 

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Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 13 of 53 PageID #: 13 

Figure 1: “Official Entry Registration Form” captured on January 13, 2020. 

13 
Event Winner Announced August 31st on ~, I=~ Complete this Official Entry fonn then click lh e 

W IN IT bu tton betow to continue! 

Title: 

Select 

Street Addreu: 

Zip Code: 

Dote of B irth: 

[ Month _:] ~ v] ~ ar _:] 

Em•III: 

Confirm Em:iill: 

J L!. Remember Me 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 14 of 53 PageID #: 14 

Figure 2: “Official Entry Form” captured on July 21, 2021. 

43. In numerous instances, the screen prominently states: “It’s Free – Enter Now!” 

The page then typically states: “Complete this Official Entry Registration Form by the deadline 

posted in the Official Rules and submit below” or “Complete this Official Entry Form then click 

the WIN IT button below to continue!” 

44. After the consumer completes the form, the consumer is presented with a call-toaction button that typically states “Submit Entry!,” “WIN IT!,” or “Win for Life!,” indicating 

that the consumer is entering the sweepstakes when they click on the button. 

45. In truth and in fact, PCH does not process consumers’ sweepstakes entries when 

consumers complete and submit the “Official Entry Form.” PCH falsely represents that 

consumers’ sweepstakes entries will be submitted when they complete the “Official Entry Form” 

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and click on the call-to-action button. 

46. Instead, in numerous instances, when consumers click on the “Submit Entry!,” 

“WIN IT!,” or “Win for Life!” call-to-action button, PCH determines whether consumers are “ecommerce qualified” based on an algorithmic model and any prior interaction consumers have 

had with PCH. 

47. If consumers who click on the call-to-action button are not “e-commerce 

qualified,” PCH does not display e-commerce pages to those consumers. Instead, PCH sends 

them to webpages where consumers can play online games and/or view numerous third-party 

advertisements prior to allowing consumers to enter the sweepstakes. 

48. If consumers are “e-commerce qualified,” PCH directs them to its e-commerce 

website path, where consumers must click through several shopping pages featuring products for 

sale, including magazine subscriptions. Between 60 and 70 percent of individuals who submit 

their information on PCH’s website for the first time are deemed “e-commerce qualified.” 

49. After they scroll through pages of product advertisements, “e-commerce 

qualified” consumers are presented with another call-to-action button that states “ENTER 

NOW!” 

50. In numerous instances, when they click on the “ENTER NOW!” call-to-action 

button, consumers must still scroll through magazine advertisements before PCH allows 

consumers to enter the sweepstakes. It is at this point where the consumer is finally entered into 

the sweepstakes. 

15 
Please ate This Message F om Our Spo sor 

W ile Your Entry is Processed! 

Proce ing .. 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 16 of 53 PageID #: 16 

Figure 3: “Processing” Entry page captured on September 20, 2021. 

51. These individuals are subsequently sent through a recurring deceptive loop of 

emails and product advertisement webpages, all of which dangle the prospect of winning a 

sweepstakes as they prod consumers to purchase PCH products. 

Welcome Emails 

52. Shortly after “e-commerce qualified” consumers complete the “Official Entry 

Form,” go through several webpages of advertisements for products, and then submit a 

sweepstakes entry, PCH sends the consumer a “welcome” email. 

53. In numerous instances, the “welcome” emails lead consumers to a webpage that 

represents that, to be eligible to win the sweepstakes, consumers must complete an additional, 

“final” step. 

54. For example, between July 2018 and until at least September 2021, consumers 

who previously registered, entered the sweepstakes, and then clicked on the “welcome” email 

were shown the following webpage: 

16 
STATUS REVIEW I CURRENT COIIPLIANCE• INCOMPLETE 

~ ~ .. n 

Imminent Winner Selection 

$5,000.00 A WEEK 

FOR LIFE PRIZE 

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SltPJ0f4 

StepOne: s.et ected to , ece1ve t h1s Not i ce 

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f ol' Gh eaway 11'1688& 

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StepThrff: Pr h e l'lur1be1' app,o\led for upco,-,i ng 

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"'''coMPLElE ~WNN3'STHMtzi"MNt 1111111111111 11 

FINA.I. STEP: Tfr1e t y enter t.o c ~p\("t <' -,,\\ 

coiai>\ fancE- re<n1il'er1~nt s for foll PENDING. elif ibiti tY to win fro11 t hi s Not i ce . 

1ACTHOWTOTRANSFER 

7 

YOUR FINAL STEP l.Al(l ACTNOW ► 

L _i 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 17 of 53 PageID #: 17 

Figure 4: Sweepstakes Landing Page for Welcome Emails, PCH 459914. 

55. As shown in the image above, the “welcome” emails lead consumers to a landing 

page that indicates that the consumer must take a “final step” to complete all compliance 

requirements for full eligibility to win the sweepstakes. 

56. In truth and in fact, consumers who submitted a timely entry when they registered 

are fully eligible to win and do not need to complete another step to be eligible to win the 

sweepstakes. 

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57. According to PCH’s Official Rules, “[u]pon timely entry, your assigned Prize 

Number(s) will be fully eligible to win.” 

58. The welcome emails, however, indicate that another step must be taken to be 

eligible to win the sweepstakes. 

59. Once consumers click on the “Act Now” call-to-action button on the webpage, 

they are taken through several shopping pages containing products for sale after which they are 

presented with another opportunity to enter the sweepstakes. This is one example of how 

consumers enter PCH’s online marketing loop, which creates an impression that product 

purchases are necessary to enter, or will increase one’s chances of winning, a sweepstakes. 

PCH’s Deceptive Loop 

60. The deceptive loop is composed of emails and a series of webpages that prod 

consumers to buy PCH products. These webpage sequences are replete with references to 

entering the sweepstakes, references to the “rewards” and “benefits” of ordering PCH products, 

and language that conflates ordering a product with entering the sweepstakes. 

61. As described in greater detail below, the deceptive loop includes: (1) emails; (2) a 

sweepstakes landing webpage; (3) a product landing webpage; (4) a series of webpages featuring 

product advertisements; and (5) an “order-entry” webpage. 

62. In numerous cases, after consumers navigate through several pages of product 

advertisements, they reach the “Official Order-Entry Form” or “Official Entry-Order Form” 

(collectively “Official Order-Entry Form”). By calling this webpage an “Official Order-Entry 

Form,” PCH explicitly conflates the processes of ordering a product and entering a 

sweepstakes—a conflation that is consistently reinforced throughout the deceptive loop. The net 

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impression from PCH’s design of its advertisements and website is that ordering a product and 

entering a sweepstakes are inextricably linked. 

63. In numerous instances, if consumers reach the “Official Order-Entry Form” 

without adding a product to their shopping cart, PCH displays a message directing the consumer 

back to the shopping pages. In other cases, PCH initially hinders consumers from entering the 

sweepstakes after they click on the “Enter Now” button by making additional, urgent, and 

confusing product offers, which consumers must scroll through before reaching another “submit 

entry” call-to-action button. 

64. In numerous instances, consumers continue to engage with PCH’s deceptive loop 

of emails, sequences of webpages that advertise its merchandise, and “Official Order-Entry 

Form(s)” due to the uncertainty created by the PCH emails that often indicate that the consumer 

must complete another step to be eligible to win the sweepstakes. 

Step One - Emails 

65. After consumers submit a sweepstakes entry and receive the “welcome” email, 

they start to receive a series of emails consistently over the course of approximately six to eight 

weeks that typically represent that they must complete a “final” or an additional step to secure a 

prize number on the “winner selection list” or be eligible to win the sweepstakes. In some 

instances, the emails warn that if they do not act in response to the email, consumers will either 

forfeit their prize numbers or be disqualified from the opportunity to win the sweepstakes. 

66. For example, between December 2018 and June 2021, PCH sent all “e-commerce 

qualified” consumers who had already submitted at least one timely sweepstakes entry the 

following emails: 

19 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 20 of 53 PageID #: 20 

 It’s waiting for you – a Prize Number on the Winner Selection List! Don’t let 

it be forfeited. Act Now to Claim a Prize Number That’s Already On the 

Winner Selection List. This is important: Failure to Enter will result in your 

forthcoming number being forfeited, never to become fully eligible for you to 

win a $25,000.00 a month for life... Winner Selection List: The official list of 

all timely entries eligible to be selected a prize number on 6/30. Only people 

with numbers on the winner selection list can win. 

 Final Step Pending re: $5,000.00 a week “Forever” Prize Number Transfer . . . 

Immediate Action Requested . . . Important: [Consumer’s Name], your record 

shows that ONE FINAL STEP REMAINS here for you to secure a prize 

number on the Winner Selection List – the one and only list from which our 

$5,000.00 a week “forever” prize winner will be selected, in the last of a 

series of drawings for [Giveaway] No. 11000. 

 Official Proof of Completion . . . Great News! There’s One Final Step left 

here! . . . You see, all prize numbers must go through specific steps before 

they can be in a position eligible to win a prize. From deciding which 

recipients will receive a notice to the timely return of an entry, these steps 

cover important processes before we select a winner . . . Our file shows 2 out 

of 3 steps successfully completed . . . 

 Authorized Advisory . . . Winning Number Verification Scheduled 

Immediately after selection of winning number on Tuesday, Feb. 26th . . . 

Respond by Entering immediately. Just 1 Step Left WNV – 52 Notice . . . BE 

20 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 21 of 53 PageID #: 21 

ADVISED THAT failure to follow entry instructions enclosed will 

automatically preclude you from any opportunity to be verified as the 

$5,000.00 a week “forever” winner with our forthcoming prize number. 

 . . . Your decision is requested immediately! . . . CERTIFICATE OF 

TITLE REGARDING FORTHCOMING PRIZE NUMBER . . . 

IMPORTANT – TITLE ENCLOSED . . . OFFICIAL PRIZE 

COMMUNICATION . . . Please examine the enclosed Certificate of Title 

issued for [Consumer’s Name]. Your Title is proof that the Prize Number to 

be issued to [Consumer’s Name] upon timely response will be LOCKED, 

along with all other eligible numbers . . . the ONLY place from which the 

winning number for our Lifetime Prize will be selected. 

 ... Act now to avoid cancellation of this prize opportunity... IMPORTANT 

NOTICE... [Consumer’s Name]: Timely respond to avoid cancellation RE: 

$5,000.00 a week for life prize opportunity herein... [Consumer’s Name]: we 

have attempted to contact you multiple times, and you haven’t responded to 

any of our notices... If you still do want to win... it’s so important you 

respond here... Avoid Cancellation... 

67. Between January 2019 and June 2020, PCH sent all “e-commerce qualified” 

consumers who had already submitted at least one timely sweepstakes entry the following 

emails: 

 As of now, your Contest File is “incomplete”. Fix this with 1 simple 

STEP!...CONTEST FILE: INCOMPLETE... ONE CRITICAL STEP, 

21 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 22 of 53 PageID #: 22 

[consumer’s name]: By completing your contest file for this notice and 

claiming your personal number, you will have met ALL eligibility 

requirements for this chance to win $7,000.00 A Week For Life... But, 

[consumer’s first name], there’s one open issue – as of now, your Contest 

Eligibility File is “incomplete”, which will automatically prevent you from 

having any chance of winning... The choice is yours, but just know, others 

have made the mistake of leaving their Contest File “incomplete” and 

ultimately forfeited all rights to prize number... 

 ... avoid disqualification of your forthcoming “forever” prize number! 

Winner Selection Disqualification Notice. Final & Only Call! 

Disqualification Warning... [Consumer’s name], if your claim to the 

forthcoming Prize Number is received after the entry deadline indicated in the 

Official Rule passes, said Number will be disqualified. It will not be added to 

the Winner Selection List for you and you cannot win... Your “Forever” Prize 

Number is in danger of DISQUALIFICATION! ... Provided you respond as 

directed, the Prize Number to be assigned solely to you will be added to the 

Winner Selection List... It is extremely important that your Prize Number 

does not end up on the List of Disqualified Numbers. 

68. In truth and in fact, a consumer does not need to take a “final” or “additional” step 

to claim a prize number on the “winner selection list” or be eligible to win the sweepstakes if 

they have already submitted a timely entry. As previously stated in Paragraph 57, PCH’s 

Official Rules state that all timely entries are fully eligible to win the sweepstakes. 

22 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 23 of 53 PageID #: 23 

69. The links in PCH’s emails generally do not send consumers to a true “final” step 

of some kind but directly to its e-commerce website. In numerous instances, PCH’s emails 

include no “disclosure” at all, that a purchase is not necessary to enter the sweepstakes or that a 

purchase does not increase the chances of winning the sweepstakes. Nor does PCH otherwise 

attempt to correct for the misleading nature of the emails. 

Steps Two & Three - Sweepstakes Landing Page and Product Landing Page 

70. When consumers click, for example, the “Act Now” or “Complete Final Step” 

button (“call-to-action button”) in these emails, PCH takes them to a webpage that PCH refers to 

as the “sweepstakes landing page.” 

71. The “sweepstakes landing page” contains instructions regarding the sweepstakes. 

It often instructs consumers to “continue” on to enter the sweepstakes. 

72. PCH then leads consumers from the “sweepstakes landing page” to a webpage 

that PCH refers to as the “product landing page,” which contains instructions to order 

merchandise. The product landing webpage typically states that “one order is all it takes” or 

refers to the consumer’s “order status.” 

73. In numerous instances, PCH uses images and design elements such as arrows that 

point from the sweepstakes landing page to the product landing page, that imply that entering the 

sweepstakes is associated with ordering merchandise. 

74. For example, PCH showed consumers the following sweepstakes landing and 

product landing pages that link entering the sweepstakes and ordering products between 

December 2018 and June 2021: 

23 
JUST ONE ORDER IS ALL IT TAKES 

TO ACTIVATE THESE CUSTOMER REWARDS 

Johnnyextraman. with all the greal values we've presented in the pasl, we're surprised to see you\re 

m.~er ever ordered with us. We've put together some or our fovo,ite values to m;Jke it eosy 

for you to find something to try here. Please don1 miss out on all these great <leals1 

,..,,..ORDER TODAY,..,,.. 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 24 of 53 PageID #: 24 

 Example One of Sweepstakes Landing Page to Product Landing Page: 

Figure 5: Sweepstakes Landing Page and Product Landing Page for Critical Decision 

Required Email Campaign, PCH 459851 –52. 

24 
/jj'J' ----- CONTINU--E ON -NOW ---T O ENT--E R. 

\....._ ~ AND C OMPLETE THE LAST STEP! 

~ Ordel Rec:ttrd lnlorma!lon 

... ... ... 

(lnlCJIOl•N-) ~U--• ""-"'-1,...,.t. 

00(~-- " " <•f<I~~ """' 

>> _,,, _.__ rtt• -""--• 1>•lf> ,.., •..._""- ..,.. cyp<0• ot 1.- "•""'•""' t.­

~........., c,t.,...-lo,u ,,.,.,.,,., ...,,1 ht,,, •£-, - ..., - -,.., y.,wc • b.,l'l'J.•.,. .._..t_ w ~w.r. 

)) A ,,....~- O I .,,,.... t U.• >.hl• -11; -•'-- l'O'I ........ --..- . ... ca- 1>l•<1•:l • n o"°"t 'WlU. 

-,. l'h-,t,•• .ti)' .. ., • .,., 1)<>110 ,i.., e•U• ft.I.lo t.o ~ ~ " th,h 1tQ\1"<1 b til«iO • 

~uc .. ..i-l<1n c.t -=""""'-- .,u.t, ?".--t ......_,., 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 25 of 53 PageID #: 25 

 Example Two of a Sweepstakes Landing Page pointing to the Product 

Landing Page: 

Figure 6: Sweepstakes Landing Page and Product Landing Page for Winning Number 

Verification Refresh Email Campaign, PCH 459709 – 10. 

25 
MAXIMUMLENGTH NOTICE OF COMPLETION 

------ RE ELIGIBILITY TO WIN ------

WIN $5,000.00 A WEEK "FOREVER" 

GUARANTEED FOR AWARD IN JUST WEEKS PROCESSING STEPS - PROCESSING STEPS PROCESSING STEPS - PROCESSING STEPS - PROCESSlf 

GREAT JOB, 

JOHNNYEXTRAMAN! 

tvow conflnue. to cornple. te. s te.p 31 

'jou, e.ntry 6'j the. deadline., and we. 

could6e. se.e.in3 'jou soon! 

T T T T 

MAXIMUM LENGTH CUSTOMER FILE UPDATE 

NO ORDERS EVER rJ REWARDS APPROVED: 

PLACED: Great Values and 100% 

FileshavvsJ. Maximumlength Satisfaction Guarantee 

has never placed an order 

with us. 

WILL YOU ORDER 

FROM THIS NOTICE? 

Johnnyextraman -- ou r customers mean 

everything to us! 

we. hope. to Uf>date. ~our ,~e. with ~ur \'1rnt orde.r 

50 ~o\..\ can e.njo~ 6e.·1~ a l'CH Cu::,torne.r! 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 26 of 53 PageID #: 26 

 Example Three of Sweepstakes Landing Page pointing to the Product Landing 

Page: 

Figure 7: Sweepstakes Landing Page and Product Landing Page for Proof of Completion 

Email Campaign, PCH 459696 – 97. 

26 
~ - you made the right decision. Continue on to claim your entry. 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 27 of 53 PageID #: 27 

Step Four – Merchandise Pages 

75. After directing consumers from the Sweepstakes Landing Page to the Product 

Landing Page, and instead of immediately allowing the consumers to enter the sweepstakes, 

PCH leads consumers through several webpages of advertisements for products. 

76. In numerous cases, consumers who have not added merchandise to their cart 

while clicking through the pages of advertisements are bombarded with pop-up messages 

alerting consumers that they have not placed an order and/or conflating ordering with entering. 

Figure 8: Lightbox pop-up captured on July 30, 2018. 

Step Five – Order-Entry Form 

77. Until 2020, PCH presented consumers with an “Official Order-Entry Form” after 

scrolling through several pages of advertisements. These pages presented consumers with the 

option to “submit entry and order” or “submit entry,” depending on whether they had any items 

in their carts. As described in Paragraphs 114-123, below, after PCH introduced a checkout 

27 
P PROSPECT'S ORDER-ENTRY FORM 

Kissing Moose Salt 

and Pepper Shaker 

Set 

SAVI: OVER 3S% 

~ Sal~eForS.Jl 45, 

• "" ~ar"~d~sv,,• 

• -J\nllrtU\P 

_, ed.., prrl .. 

Exquisite Spun 

Glass Elephant 

SAVE 251⁄4! 

s.n..,-~w~ w11999 

s~ suvw,g '"" °"~,,. tpon g~s --(--~ :nooetQ!M., ONOO~ttOl'Tt~4t'IQII! 

• ~ v.'1h IS~ g,;itd ai;«na 

.. Ma.~agr1111 

Support Belt W ith 

Titanium Coating 

SAVE20%1 

\&SR'POt.U.t M 

SIJPQCCIS Ttlo1C><Qil .anc ____ ~ .,_ 

~ecpll'\1y,Oyr"Sk-~~ 

.,,,.,,_...,,,_ 

·- .t,fQRE vCase 2:23-cv-04735 Document 1 Filed 06/26/23 Page 28 of 53 PageID #: 28 

process that included a credit card payment option, they presented consumers with the option to 

“submit an order and continue” if they had items in their shopping cart. 

78. In numerous cases, consumers who click on the call-to-action button to enter the 

sweepstakes without any items in their carts are not immediately entered into the sweepstakes. 

Instead, a message appears on the screen notifying them that “YOUR CART’S STILL EMPTY” 

along with another screen of product advertisements. 

Figure 9: “EO Form” lightbox for Cancellation Notice Email Campaign sent to consumers 

between January 2017 and December 2019, PCH 453816. 

79. If the consumer scrolls through additional pages of merchandise, in numerous 

instances, PCH presents the consumer with another Official Order-Entry Form. 

80. At the end of each long page of merchandise or magazine subscription offers, 

28 
MICN~st LMng 

6 1,;su -2s / 1 Y R Add To Cart + c°' ..... Pncse S29.ZO PCHPnce UL6!. rJowOnty sseJ· 

Be Fabulous! Find Your Essence! 

Essence 

Save an EXTRA 50% OFF! 

PCH Price Was .W..00 tJow Only $6.00! 

& ls.sues I 1 YR. 

WNII s F~b. Re«::e & Fulfil 'l'lg For African AtneflC8n 

W omen! Fttl.:J )I A bl ~Ofl of h• be.>vt~ fa:Sl'ltOll 

wreppasd ..,,o one ernpowenr-g magazine - for 

Alncan-Amenc;;;:r, wo~ You'I fmd al the 

,nsp,r-atioo you "f'l:'lnt to, a tte:;,,ith1f"< lifestyte car~ 

choices, relat1onsh1ps a.."d more Plus )'OU won't 

Read 'Ao,e 

SHOPPING CART EMPTY lo~.,- ,_,..,,..Cklt ... ADOTO(Ar"t,.mo,nb ... -.,. • ,-.• -•INl~"­

... .-yMQII.. ,._ H•er.d11c.,-it1..-..1 S..IW••'-0.-ra"4__, 

Continue ► 

---~ .. --_,~ ... --~-~--<='"'ii""llf~..:?::: --~~~Mb•-•---=• ..... O'I.-\C. 

NOPQIIIOtW-W.(1111 rtttlCQt.~TQ(lntJ'l_ 

.,i.~.IEWOWT~'C .&111~-a~Of"W'f91-e. 

'!ior.l'~~~..-WlllXICU!W::a-­

for-~10.-.-0¥"c: -,., "~11$1!110. 

N~ ~ n=--~_,.-=-:1. 

-..--...,-..-.Mll~ 'III'•~~~------. 

~~~--~..,..111<,:,e,;:,-,--

--~-

o,a,~~-"""'~ ~-~~~~ 

~,-,O---C M;Qr,O-.:aeoeoc--,.1.~~,-,ei.n=S::-~A;c,'X>~ 

F«lll'l:n~Q!l:utilmll~a"'Ca~O".~Vft-.ccie• ~,,_, --·!JO'~ 

=c..ra.,..~•1-l'iio °"'----.... =s-.....-

- C z;l• .,...._.~---~ 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 29 of 53 PageID #: 29 

PCH states in small, light-colored typeface the following: “No purchase or fee necessary to enter. 

A purchase won’t increase an individual’s chance of winning.” This message appears in an area 

referred to as “below the frame” of the webpage, meaning that consumers must scroll down to 

see it, which they are unlikely to do. The message is also below the main “continue” button, 

which is prominently displayed in large font, an example of which is shown below: 

Figure 10: “No purchase or fee necessary to enter. A purchase won’t improve an individual’s 

chance of winning” notice displayed underneath the “continue” button, captured on July 13, 

2021. 

29 
Order Confirmat,on 

1.Clwo r ••~. ~thl:llm,$hopprqtantS~(ll'IO••~so l #nFORFEITl«l 

myosome,~tom-.--.1,qt,eA~Sh::ippng:~ 1a::l"'~~ 

Y SIO'Plt«i CART EMPIY 0 ...,., kl Can 

You are missing out on incredible sa-Vfngs and customer benerrts! But 

rhere·s still time• Won't you Reconsider and uy an item tod.ay? 

f)_~t.:)~ P~C~:~J~- [)[~I 

CART EMPTY Continue Shoppcng ► 

Pnze Acknowledgement 

~,.._$J~ ...,•~«trr-~(..-..0Ml1!110b-~•-.ul'IQlll!:Pl'1ie 

~)lot,,:,1".te:!l'amll'IIS'ICUe Cl!Jdkl::i--.ep:ta!(S)lllltd~ 

50,000.0 

&"lJPt.RPl UZC 

BONUS 

--· 'I•-~---

, ......... --.-- ......... -·---·-----.,.~ ... ·-•-c.-• 1110 l>UIIICKA!it O't 'ff lllt(USAlff , JO UIOl A "'8CHA5l WOll'1 ... MM. AN ............. S QltdlCt OF Wl.-:0. 

Submit Entry ► 

... ________ 

,._,..... -----•-J•,- _ _.,._.......,_~-- " 

______ ­ _ ,_..., ______ ., ____ n..,_Mt_t,_IIO 

-----

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 30 of 53 PageID #: 30 

81. PCH includes the same message above the “submit entry and order” or “submit 

entry” button on the “Official Order-Entry Form.” 

Figure 11: Official Order-Entry Form, PCH 27531. 

82. While the message appears around the “submit entry” or “submit entry and order” 

button, it does not cure the deceptive net impression that a purchase is necessary to enter or that a 

purchase will increase one’s chance of winning the sweepstakes because a consumer is not likely 

to see it. If a consumer happens to see the disclosure, the deceptive loop is designed, as shown 

below, to persuade them that they have not, in fact, submitted a valid sweepstakes entry unless 

30 
\VE'RE HOPING FOR AN ORDER! 

'" ~,m. MAXIMUMLENGTH 

D,UII 

Wt stt r ou',•t ..,,·tr placed 11.b orcltt: Wi1b 

1111 the f""-tuue- dub we bin"< for )'O'U hac 

includini FREE ornRS & rPTO $0°, 

OFF SA\'INCS. we hope you'll i.' :Mj 'f'1•· fo ,1 

~-J~ •,-,t!' ~ ~~• );_(•!I 1::11, «h,~1,~c '" f 1c(1a• :<l 

C-.:\:Ol~IC~ s:~:~I' ;m~r U;\\llll,tl hkc Pay 

Notluna: Now 11nd Tty Bt"fon You Buy bend'ih. 

411)(,( C~ISl-OlllC(•onl)' pri\'lltC UJC$. 

lJR. JOlt"-'i\'tXTit.AUA:' lJA..XUlt"l.ll.J:~CTK 

S1111usi 

~~.~~&1 1'1t4fml NO ORDER 

Ol'iFILE 

l"ttr ...... 11 c- - • 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 31 of 53 PageID #: 31 

they purchase. 

Back to Step One - Emails 

83. In numerous instances, PCH bombards consumers with emails soon after they go 

through the loop and enter the sweepstakes that indicate, once again, that the consumer must 

complete “one final step” or “one critical step,” or that there is “just [one] step left,” to claim a 

prize number on the winner selection list and be eligible to win the sweepstakes, or else be 

disqualified from the opportunity to win the sweepstakes. These emails draw consumers back 

into the deceptive loop. 

84. In numerous instances, PCH purports to award consumers who purchase products 

some kind of special status on the product landing pages, which further reinforces to consumers 

the impression that ordering more products increases their chances of winning. 

85. Those who order are awarded “Preferred Customer,” “Preferred Plus,” or 

“Presidential Preferred Customer” status depending on how many orders they have placed with 

PCH. An example of a product landing page that reveals different levels of status depending on 

the consumer’s order history is as follows: 

Figure 12: Product Landing Page of Prize Coupons V2 Email Campaign, PCH 459838 

(emphasis in original). 

31 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 32 of 53 PageID #: 32 

Emails with Deceptive Subject Headings 

86. Since at least 2016, PCH has sent millions of emails with subject lines that 

referred to fictitious forms, documents, or actions to provoke consumers into opening and 

reading the emails. These subject lines featured references to a “W” followed by a hyphen and a 

number or a “W” followed by a number. 

87. Examples of such subject lines include: “High Priority Doc. W-2 Issued”; “High 

Priority Doc. W-10 Enclosed”; “W-19 Notice – Step 3 of 3 INCOMPLETE”; “Enclosed Doc. 

W8 CERTIFIED. OPEN NOW!”; and “CONFIRMED & BINDING Contents Re. Doc W11.” 

88. These subject lines mislead recipients about a material fact regarding the contents 

or subject matter of the email message by conveying the sense that recipients urgently need to 

review an important document, fill out an official form, or otherwise act to comply with an 

official requirement. Yet there are no such documents, forms, or other compliance requirements 

to be found in the body of these emails or on the PCH webpages to which these emails direct 

consumers. 

89. For example, between December 27, 2018 and February 25, 2019, PCH sent the 

email reproduced below to over 593,000 consumers. The subject line of this email was: “High 

Priority Doc. W-52 Enclosed.” However, no “High Priority Document” or “Document W-52” 

actually existed, nor was any such document “enclosed” or even referenced in the body of the 

email. Instead, the email instructed consumers to “Complete [a] Critical Step” to be eligible for 

the $5,000-a-week sweepstakes prize. 

32 
e: ... //11--C-r..11.-~---,-m, 

$5,000.00 A WEEK "FOREVER" PRIZE CLIARAATEED F~ AWARD J., JUST WEEKS.' 

CONTEST FILE: INCOMPLETE 

Compl.C-e Cnt1ul s1~p 

L ONE:CRITICAl HEP 

I 

jltN_OLI!. 

il,o~IMCOIIIM ••IN.I n1bm aed danwtf 

,o,, """"',.~. ,(~ • M:.c1m.1:JUll • .lllti, 

~~__,.111,ti•dwtmb 

¥>fl P,i_<KK)QOAylf.dc "f"~•ff" 

~FC6111Vp2ftn 

CIIK&:~1~~ plQQ lu.NQflGCQll~Kl'l'IIM~ 

auJres&lllnU1sdecl.ng)W,a,.lhe:l4,C<X>OOA~~ 

Pnz:e-'llfllef n 1151:'llledcsl 

%:s".sS=iCXXIOOA\\-ici;falne,ft!l.Jfter't\a,aitlC1'daa}' 

~trir~wnn..atmlUl~aii:l~~ttmr~ 

~~--.:,~f1'11(11 

lhl \lN F'Cfl N'lil:UIM~~luw- Uolfnc. fCUICCMa.11 

BIJ-Dh( f h ■ ·aw:cm,....·. 'Wll-+id Ml ■■tanwti, .. lf ~1111 rw.i 

rrn l'l!lliTlf "'1 c-nr,(" ~ Ml'ffrgltts ·r,~11• Pnn.,,.,, 'fJU' 

--tt- I •ll!J"-,Ct.l lo ... , .. iy thK - ~"''' ••r ""· ~ f>lfl.th 1111'" ,ONfll•k ·<o ~ ... , I 11-, 

Tr« Cf'ICl:-.i: .. ywr) Oul IUil UIGW Cl~) N11r m~ 11 t-fflSlik,,o Of 

I ?tVf"g ther cc.1e51 r~ 0h:x:N'r4'.ft.'lt"" and t,jktiilkl~ fetft-ite<I lilll 

ngr-:, 10 i:nz.e moM'( mai: coota l'l!I~ been •'Cf! v.m U'<-r pemcml _,,.,_ 

CW'l)'OUWM[IIIIC' b,nJ l)J1 0"1 nOICN!', tltll 1WOl11tt1rn, v.onn of 

fnlooal 5CW'"Y b«.nJ,e ~o I bled k> DC:t on ttns ore smP( Stp' 

OOtl't ns.k toning ~nl1! n~l'l «I ~Otl COMP1.LTC , ~us NCM1 

~TANT. StrK.1 rlllry °'".IOIIW lr'MJC.i1rCI 11'1 r ~ifi'<lrtra 

We trust ... ICl.tt''f'Oaet"Pllle•f11 it11hfol-1'11rla~ddFfA~k.• 

G"fN11000 

""' .__ .• ., •~•• ............... .. o• .. ,._•lllflJltl ----·---·-· __ ·~ ............ ,..... ........ 1 -----··· 

,,., _ _.,_,..._,,... __ ,_ __ ---- _ .. t•••l lillll,oll ....... IJ,1- "P- O N-'\11 • .... ___ ,. .. ,_ ... ..., , .... _ :.:.-- __ ..... "! __ .. :.== ,_ .... .. ,-. --~~=-"::.-::= 

~-~:.:.;.·::=-:.:-!:.i~===.:..:a";!:""" -:::,:,,.:•-•ll~...---M<tl\l,__,_,A ..... t:-)lit"',_ 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 33 of 53 PageID #: 33 

Figure 13: “High Priority Doc. W-52 Enclosed” Subject Line Email, PCH 458215 – 16. 

90. In another example, PCH sent the email reproduced below to over 738,000 

consumers on May 3, 2019. The subject line of this email was: “Enc. Doc. W30 APPROVED. 

OPEN NOW!” However, no document “W30” actually existed, nor was any such document 

“enclosed” or even referenced in the body of the email. Instead, the email, titled a “Winner 

Selection List Commitment,” touted a prize of “$50,000 A Month For Life,” and “urged” 

consumers to “Respond Now” or “Act Now” “before [their] number [was] permanently 

forfeited!” 

33 
,is!, Publi.JhtnCl•arl.-.g HouM 

C

Winn.er S.el.ertinn .Ciat 

nmmttm.rnt 

.$ so,000.00 . 

Month For Life 

~ Respond Now 

((FN_PC)}. h:t d0cuncnt 1S ow amfirmed & binding oommimcnl that 

your fotthoorning pnzo n~r wll Mi'Je • pem11JMnt piace on lhe Wimer 

Selec:1100 1.J151, ff'181;ing 11 _.,. etig,ble 10 win . ,, upgrad4d ~ount of 

SS0 ,0 00,00 A Mondt ForLW. UPC.. Juno,

1 

Th• Wll'lnw S.::llefl.Cilli Ult IJ 1111 oftda J lt21 01 lfltrlH t lgll'lll ID t4 IHlltcttd QI I.Ntw.D pnz• 

Yllnnei Rm Qwy • 13000 ot1 1100 NI am~ tflt"ll!i nrt! <fl ltltl t=it. OrfY peope Mltl 

anba\: C. lhl l'Ylnrw ~U1tc:in--1n 

THIS JS TO CERTIFY: 

l . We, the urd@~, upon rec:aipt ol reci,ient's limety ra6pl(ftie herein, 

wil ~ a true nnd valid pnzc number on the \-vlnner Sclccton Lisl ID 

{ (FIi PC)) { (LN PC) ) 

2. • is M.o true tlal if <ll'ly numtlef 1swed from ttlls notlOI t1"1c111:che5 the 

winring nuntJcr dnM'Tl for lht5 spcolll early bok C'\"frt, lhc owner of 

s;.ildnurrbft''#OJli:I celVi.$2spco.oc &n upgraded 

Stonthly poyout amount of $50,000. 00tobc 

p.:I each aid every mcntl for the remainder of the winnet':s Uc 

3 . Let1l beundenaoodlhaltfyouFAIL TO USt.tffyourenlrybyhl 

~ acce1eratedlkadline~llle 5th day of ~ W\the 

year ~ bebe md'lll)tw, EST, thls.commlllllliml wl be l"IJI arid void 

afld al rtghts to )'Otlf fonhcom,ng p,tz.e l"IJmbef riiill be 1mmedlalf!'1)' and 

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Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 34 of 53 PageID #: 34 

Figure 14: “Enc. Doc. W30 APPROVED. OPEN NOW!” Subject Line Email, PCH 459440-43. 

91. These subject lines were likely to mislead consumers about a material fact 

regarding the contents or subject matter of the emails because such forms were a complete 

fiction. 

92. Much like the examples above, in numerous instances, not only was the document 

or form mentioned in the subject line of the email a sham, but the body of the emails contained 

no further reference to any such documents, forms, or other supposedly pressing requirements. 

93. The inclusion of “W-#” language in these subject lines compounds the deception 

inherent in referring to fabricated documents or forms to induce consumers to open emails and 

34 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 35 of 53 PageID #: 35 

view PCH marketing materials. 

94. Numerous forms used by the Internal Revenue Service (“IRS”) employ the same 

naming convention that PCH uses in its deceptive subject lines: a capital W followed by a 

hyphen and a number. For example, IRS Form W-2 is a widely known wage and tax statement 

form. There are many other IRS “W-#” forms that taxpayers receive or must complete to 

comply with federal income tax laws. 

95. The use of the same or similar naming convention that the IRS uses on federal tax 

forms paired with a forceful demand that consumers comply with some pressing requirement 

when no such requirement exists increases the likelihood that consumers will be misled by these 

subject lines. Subject lines such as “High Priority Doc. W-34 Issued” create the impression that 

consumers have a tax form, tax obligation, or tax-related requirement that they must fulfill. 

96. Even if consumers do not believe they have a tax obligation when they see these 

subject lines, the use of a letter and a number in association with a form or a document 

misleadingly suggests that there is a definite and official requirement to which a consumer must 

attend. For example, the inclusion of “W-#” language in the subject line “W-19 Notice – Step 3 

of 3 INCOMPLETE” lends specificity and formality to PCH’s appeal. 

97. For these reasons, the use of “W-#” language exacerbates the deception inherent 

in tricking consumers with urgent solicitations to review forms and documents that do not exist. 

98. Finally, PCH has actual knowledge, or knowledge can be fairly imputed to it 

under the circumstances, that these subject lines are likely to mislead a recipient. Despite 

frequently blasting emails to hundreds of thousands of consumers touting fictional forms and 

documents, PCH knows that no such forms and documents actually exist and that promoting 

35 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 36 of 53 PageID #: 36 

illusory forms and documents is likely to mislead consumers. 

99. PCH has come under repeated fire by Congress, federal and state regulators, and 

consumer advocates for its deceptive use of government lookalike forms in connection with its 

sweepstakes promotions. Given this extensive history of public criticism for referencing or using 

bogus government forms, PCH knows, or knowledge can be fairly imputed to it, that using a 

well-known naming convention that is uniquely associated with IRS forms in the subject lines of 

its emails is likely to mislead its customers. 

100. Numerous consumers clicked on the violative emails. In many cases, consumers 

who clicked on ecommerce emails proceeded to place orders. Even those consumers who visited 

the ecommerce website and did not place orders spent valuable time on the website. In addition, 

numerous consumers who clicked on emails that led them to other websites operated by PCH 

spent valuable time on those other websites. 

Consumers’ Order and Checkout Experience 

Prior to August 2019 

101. Until approximately August 2019, PCH did not offer consumers the option to pay 

for merchandise when they placed an order. Consumers would instead receive an invoice along 

with the merchandise in the mail. 

102. When consumers added an item to their cart while scrolling through the 

merchandise pages, the item would first appear in the cart at the bottom of the merchandise page. 

103. After consumers scrolled and clicked through the merchandise pages, they 

reached a combined “Official Order-Entry Form” page, which displayed consumers’ shopping 

carts. The shopping carts displayed the “PCH Price,” which was the price of the product, and the 

36 
Order Confirmation 

~ Sho in Cart 111.m .. 1nuu1 

J alapei\o P e p per C orer P l u s 1 

1) FREE! 

PCHPr,ce 16.96- "Payment:s E&Ch Only $1 .74-

Continue Shopptnq ► 

.,,_.___-.on. .. ----a,ppllO:-•••-- .,..__" __ ----•...,~ f'•M-"'il-~ •p,plc--•1--tt.-i.w-..e.... -.!MIi! 

NO PURCHASC OR FEE N ECESSARY TO C NTER. 

A PURCHASE WON"T MPROYE A N INDIVIOUA L"S CHANCE Of' ~ P•O,UMG. 

"" ' 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 37 of 53 PageID #: 37 

amount of each installment payment if the consumer chose to pay in installments. 

104. The shopping carts did not display a statement of total costs, including shipping 

and handling charges or applicable taxes. An example of PCH’s shopping cart, which displayed 

the “PCH Price” and installment payment, is below: 

Figure 15: Order Page captured on July 30, 2018. 

105. Under the shopping cart, PCH added the following small-print disclosure: “*For 

Merchandise Offers, see details on applicable sales tax, shipping and handling, and other charges 

by clicking here.” Only those consumers who clicked on the link would see a table of shipping 

and handling costs based on order value. 

106. Although consumers did not enter payment information at the time they submitted 

the order, PCH’s position has been that they assumed the obligation to pay for any merchandise 

at the time they placed the order, and in fact, were being extended “free credit.” In numerous 

cases, consumers were unaware that they had assumed such an obligation by clicking on the 

“Submit Your Entry & Order” button. 

37 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 38 of 53 PageID #: 38 

107. Shortly after consumers clicked on this button, PCH would send them “order 

confirmation” emails with the “order details.” The “details” in the order confirmation email did 

not include the total costs of the consumers’ orders nor did they mention or set forth any 

shipping and handling charges or taxes associated with the order. 

108. Several days later, PCH sent consumers “order processed” emails, which 

contained the price of the merchandise, shipping and handling charges, and applicable taxes. 

This email was the first communication that consumers received from PCH that contained a 

statement of the total costs to be paid by the consumer. 

109. In addition to displaying the total costs of the order for the first time, the “order 

processed” emails also notified consumers that the order “has been Processed and is being 

scheduled for shipment.” The “order processed” emails did not include any information on how 

to cancel the order. 

110. PCH’s policy on order cancellations, which is found in the “Frequently Asked 

Questions” page of the Company’s website, states as follows: 

Due to our automated processing system[,] there is a very limited 

window in which we are able to cancel your merchandise order. 

We process orders very quickly and, like many other companies, 

once an order enters our fulfillment process we are unable to 

cancel it and stop the shipment. 

111. In numerous cases, by the time consumers received the “order processed” email 

that included the total costs of their order, it was too late for them to cancel and stop shipment of 

their order. 

112. In such cases, consumers had to wait until after they received the merchandise in 

order to return the product. In numerous instances, consumers were required to pay the shipping 

38 
 

PLEASE PLACE AN ORDER WITH US TODAY! 

TO PLACE YOUR ORDER: Simply click the button below, 

To see the products again, use the Page Tabs below. 

Order with Confidence: Pay Nothing Now• No Credit Card Required• 100% 

Satisfaction Guaranteed! 

Granitestone Dlamond tr• Grlll Pan 

PCH Price: 5 Payments Each Only: 

QUANTITY: 

, . $14.95" $2.99" 

I ◄ Previous Page 6 

"For Merchandise Offers, see details on applicable sales tax, shipping and 

handling, and other charges by clicking here. 

For Magazine Offers, applicable sales tax will be added in WA, CA, and 

ME. 

NO PURCHASE OR FEE NECESSARY TO ENTER. 

A PURCHASE WON'T IMPROVE AN INDIVIDUAL'S CHANCE OF 

WINNING. 

Your Merchandise order should arrive in about 2 to 4 weeks. 

For Information relating to timing and delivery of Magazines click here. 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 39 of 53 PageID #: 39 

costs associated with returning their merchandise. 

113. Numerous consumers have complained that PCH never disclosed the shipping and 

handling costs when they placed the order. They were surprised to learn of the high shipping and 

handling costs when they read the order processed email or received the products in the mail. 

August 2019 to the Present 

114. Beginning in approximately August 2019, PCH introduced a new checkout 

process. 

115. As shown below, in some cases, the consumer would be presented with an OrderEntry form that was similar to that depicted in Figure 15, above, except that the call-to-action 

button would state “PLACE ORDER & continue” and make no reference to submitting an entry: 

Figure 16: Image contained in “Marketing Update June 2020,” PCH 229672. 

116. PCH then inserted a checkout “option page” after consumers had submitted an 

order, which invited consumers to choose either to (1) pay by credit card; or (2) pay or be billed 

later. An example of such an option page is below: 

39 
 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 40 of 53 PageID #: 40 

Figure 17: Image contained in “Marketing Update 2020,” PCH 229670. 

117. Consumers who chose the “pay later” option would not be provided with a 

statement of total costs, including shipping and handling and applicable taxes, until they received 

an “order processed” email, at which point, consistent with PCH’s policy as stated in Paragraph 

110, above, it was generally too late to cancel an order and stop shipment. 

118. If consumers opted instead to “pay now” by credit card, they would be led to a 

payment page, which included a summary of total costs, including shipping and handling charges 

and applicable taxes. 

119. PCH’s own records reveal that their shipping and handling charges average 41% 

of the costs of the merchandise and could be as high as or higher than 100% of the merchandise 

costs. Numerous PCH executives and employees, including a Senior Vice President, Assistant 

Vice President, the Associate Director of the E-commerce, and Senior Director of Creative, have 

acknowledged that consumers experience “sticker shock” when they see shipping and handling 

charges. 

120. In fact, PCH’s records show that approximately 50% of consumers who initially 

selected the pay by credit card option ultimately declined to enter their credit card information 

after seeing the shipping and handling charges associated with their orders, a fall-off that was 

40 
 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 41 of 53 PageID #: 41 

widely ascribed by PCH management to the disclosure of shipping and handling charges on the 

payment page. 

121. PCH took various steps to mitigate the “sticker shock” of shipping and handling 

charges and the enduring issue of the 50% falloff in credit card payments. These measures 

included offering free shipping. 

122. After PCH tested free shipping as a means of incentivizing credit card payments, 

the Company’s Vice President and Chief Analytics Officer acknowledged in an email to other 

key executives that “there was a high sensitivity to shipping costs” among its consumers. 

123. In early 2020, PCH designed a new credit card payment page. The new design, 

depicted in Figure 18, below, resulted from a deliberate effort to make information about 

shipping and handling and other costs less conspicuous. As PCH’s Senior Director of the 

Creative Department explained in a June 1, 2020, email to executives, they had redesigned the 

payment page by “flush[ing] [the cost information] left instead of right, and us[ing] color to 

bring [the consumer’s] eye down past [the cost section] to the actions [PCH wanted] them to 

take,” that is, entering their credit card information. 

41 
Publishers Clearing House 

You're ALMOST set, Johnnyextraman1 

JUST 1 CLICK 

TO COMPLETE YOUR CHECKOUT NOW! 

SHIPPING ADDRESS 

Name Here 

Address Line 1 

Address Line 2 

ORDER SUMMARY 

1 Product Name OtY 1 $0.1)() 

SlJBlOTAL (I rID,ij $0.CXJ 

ESnl,Hll>SI-I.Pf',!IG $0.()0 

unw.ran.u $0.00 

$0.00 

•........--wi .. O.--HqWIIM~IM'.la_,,IIOl>il'"'--p,IMM9JIOjlCfl.Clolf'"""OIW 

~•...-.it"'llnl--l'dNMd-fiMI~ 

SAVED PAYMENT DETAILS 

Name M i.io. rno 

1235 5555 5555 5 

Bill.ING ADDRESS 

6259 Monroe S1reet 

Bakersfield 

Expil'111ion Di le 

Se-a,r11y 

Cod• 

CA • 93306 

WE'VE MADE IT SO FAST AND EASY FOR YOU - CLICK NOW! 

> I Complete Checkout 

NO THANKS, BILL ME INSTEAD 

<◄ 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 42 of 53 PageID #: 42 

Figure 18: PCH 164522. 

PCH’s “Risk-Free” Guarantee 

124. PCH repeatedly promises consumers that ordering is “risk free.” Examples of 

PCH’s “risk-free” guarantees are shown below: 

42 
 

100% SATISFACTION 

GUARANTEED WHEN YOU ORDER! 

Johnnyextraman, did you know that Publ isher Clearing 

House offers a 100% Satisfaction Guarantee on 

every product we sell? It 's true! Now that we've given 

you a great reason to give us a try, we hope you will 

place your first order today - risk free! 

Johnnyextraman, Please Place Your First Order Today! 

ff,»»>) AN ORDER IS REQUIRED U««<i TO ACTIVATE CUSTOMER REWARDS BELOW Iii ~,.,....,, ·"'~-,,-~,~ .I INSTANTLY With Our Special SEND NO MONEY NOW (J =.. ·• ~M0

LETELYRISKFREE! 

/ LOWEST PCH PRICES ON ITEMS IN Tl-US NOTICE / FAST ORDER PROCESSING 

/ LIMITED INVENTORY SELECTIONS 

/ NOT AVAILABLE TO THE GENERAL PUBLIC 

/ NO-HASSLE RETURN POLICY 

/ 100% SATISFACTION GLARANTEE 

Johnnyextraman1 the TOTAL PCH SHOPPING ADVANTAGE is yours TODAY with any order! 

Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 43 of 53 PageID #: 43 

Figure 19: PCH 304075, PCH 448244. 

125. PCH’s risk-free guarantee is false and misleading. PCH’s policy is that 

consumers must bear the burden of returning merchandise at their own expense. 

126. No mention of the consumer’s obligation to return merchandise at their own 

expense, or PCH’s policy not to reimburse consumers for return postage, appears on PCH’s ecommerce webpages or Order-Entry page. 

127. PCH’s policy about returning merchandise is, in fact, only located in the 

Frequently Asked Questions section of the Company’s website in a section entitled: “How do I 

43 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 44 of 53 PageID #: 44 

return my Publishers Clearing House order?” 

128. If consumers proactively visit this page and click on the question, they are led to a 

lengthy statement that reiterates that ordering from PCH is “Risk-Free.” Yet at the end of the 

page, the Company reveals the following: “our company policy does not include reimbursement 

for postal expenses, which may be incurred with the return of merchandise to our returns 

processing facility.” 

129. In numerous cases, the costs of returning merchandise by USPS or other means 

are substantial in relation to the cost of the product. 

130. PCH’s own records show that numerous consumers have requested that PCH 

provide pre-paid return shipping labels and have been dismayed to discover that PCH does not 

cover the cost of return postage. 

PCH’s Deceptive Representation in its Privacy Policy 

131. Until on or about January 2019, PCH had conflicting representations in its privacy 

policy. It had a statement in the middle of its privacy policy stating it did “not rent, license, or 

sell” consumers’ information to third parties 

132. Other sections of its privacy policy stated that it did share information with third 

parties in aggregate form. Indeed, PCH has shared consumers’ personal information with third 

parties including marketing cooperatives, advertisers, and publishing companies to target 

advertisements on PCH consumers. 

133. On or about January 2019, PCH removed the statement that PCH “do[es] not rent, 

license, or sell personal data to third parties” from its privacy policy. 

44 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 45 of 53 PageID #: 45 

134. Based on the facts and violations of law alleged in this Complaint, the FTC has 

reason to believe that Defendant is violating or is about to violate laws enforced by the 

Commission. 

VIOLATIONS OF THE FTC ACT 

135. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts 

or practices in or affecting commerce.” 

136. Misrepresentations or deceptive omissions of material fact constitute deceptive 

acts or practices prohibited by Section 5(a) of the FTC Act. 

Count I 

Misrepresentation Regarding Sweepstakes Offers 

137. In numerous instances, in connection with the advertising, marketing, or 

promotion of sweepstakes offers, Defendant has represented, directly or indirectly, expressly or 

by implication, that a purchase is necessary to enter the sweepstakes or that a purchase would 

increase one’s chances of winning the sweepstakes. 

138. In truth and in fact, in numerous instances in which Defendant has made the 

representation set forth in Paragraph 137, a purchase is not necessary to enter the sweepstakes 

and does not increase one’s chances of winning the sweepstakes. 

139. Therefore, Defendant’s representation as set forth in Paragraph 137 is false and 

misleading and constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 

45 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 46 of 53 PageID #: 46 

Count II 

Misrepresentation Regarding Entering the Sweepstakes 

140. In numerous instances, in connection with the advertising, marketing, or 

promotion of sweepstakes offers, Defendant has represented, directly or indirectly, expressly or 

by implication, that consumers who complete and submit the “Official Entry Form” or “Official 

Entry Registration Form” on PCH’s website are in fact entering a sweepstakes at the time they 

submit the online form. 

141. In truth and in fact, in numerous instances in which Defendant has made the 

representation set forth in Paragraph 140, consumers are not entering a sweepstakes—and cannot 

submit a sweepstakes entry—at the time they submit the online form. 

142. Therefore, Defendant’s representation as set forth in Paragraph 141 is false and 

misleading and constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 

Count III 

Deception Regarding Entering the Sweepstakes 

143. In numerous instances, in connection with the advertising, marketing, or 

promotion of sweepstakes offers, Defendant has represented, directly or indirectly, expressly or 

by implication, that consumers are completing the “Official Entry Form” or “Official Entry 

Registration Form” on PCH’s website for the purpose of submitting an official sweepstakes 

entry. 

144. In numerous instances in which Defendant has made the representation set forth 

in Paragraph 143, Defendant has failed to disclose or disclose adequately to consumers that 

46 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 47 of 53 PageID #: 47 

PCH does not in fact enter consumers into the sweepstakes at the time they complete and submit 

the “Official Entry Form” or “Official Entry Registration Form” on PCH’s website. 

145. In light of the representation described in Paragraph 143, Defendant’s failure to 

disclose or disclose adequately the material information described in Paragraph 144 constitutes a 

deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

Count IV 

Misrepresentation Regarding Eligibility to Win Sweepstakes 

146. In numerous instances, in connection with the advertising, marketing, or 

promotion of sweepstakes offers, Defendant has represented, directly or indirectly, expressly or 

by implication, that consumers must complete another step even after they have previously 

entered the same sweepstakes: 

 To remain eligible to win the sweepstakes; 

 To claim a place on a list from which the winner of the sweepstakes will be 

selected; or 

 To avoid disqualification, forfeiture, or cancellation of the opportunity to win 

the sweepstakes. 

147. In truth and in fact, in numerous instances in which Defendant has made the 

representations set forth in Paragraph 146, consumers who have previously submitted a timely 

sweepstakes entry do not need to take an additional step to remain eligible to win the 

sweepstakes, do not need to claim a place on a list from which the winner of the sweepstakes 

will be selected, and do not need to complete another step to avoid disqualification, forfeiture, or 

cancellation of the opportunity to win the sweepstakes. 

47 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 48 of 53 PageID #: 48 

148. Therefore, the representations set forth in Paragraph 146 are false and misleading 

and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 

45(a). 

Count V 

Misrepresentation Regarding Total Costs of Orders 

149. In numerous instances, in connection with the advertising, marketing, promotion, 

offering for sale, or sale of products, Defendant has represented, directly or indirectly, expressly 

or by implication, the total costs of an order to be those set forth on the order-entry page. 

150. In truth and in fact, in numerous instances in which Defendant has made the 

representation set forth in Paragraph 149, the total costs of an order are not set forth on the orderentry page, which does not include substantial shipping and handling fees, among other costs. 

151. Therefore, Defendant’s representation as set forth in Paragraph 149 is false and 

misleading and constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 

Count VI 

Deception Regarding Additional Charges Associated with Consumers’ Orders 

152. In numerous instances, in connection with the advertising, marketing, promotion, 

offering for sale, or sale of products, Defendant has represented, directly or indirectly, expressly 

or by implication, that the price of an order is as stated on the order-entry page. 

153. In numerous instances in which Defendant has made the representation set forth 

in Paragraph 152, Defendant has failed to disclose or disclose adequately before a consumer 

incurs a financial obligation, material costs associated with consumer orders including taxes and 

48 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 49 of 53 PageID #: 49 

substantial shipping and handling fees. 

154. In light of the representation described in Paragraph 152, Defendant’s failure to 

disclose or disclose adequately the material information described in Paragraph 153 constitutes a 

deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

Count VII 

Misrepresentation Regarding “Risk-Free” Order Guarantee 

155. In numerous instances, in connection with the advertising, marketing, promotion, 

offering for sale, or sale of Defendant’s products, Defendant has represented, directly or 

indirectly, expressly or by implication, that ordering is risk free. 

156. In truth and in fact, in numerous instances in which Defendant has made the 

representation set forth in Paragraph 155 of this Complaint, ordering is not risk free, as 

consumers are required to pay substantial shipping costs to return products. 

157. Therefore, Defendant’s representation as set forth in Paragraph 155 is false and 

misleading and constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 

Count VIII 

Misrepresentation Regarding the Sharing of Consumers’ Personal Information 

158. Until on or about January 2019, Defendant has represented, directly or indirectly, 

expressly or by implication, that it does “not rent, license, or sell personal data to third parties.” 

159. In truth and in fact, before January 2019, Defendant did rent, license, or sell 

consumers’ personal data to third parties including, but not limited to, other marketing and 

advertising partners and media intermediaries who used the information to target consumers with 

49 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 50 of 53 PageID #: 50 

third-party advertising on PCH’s websites and other third-party platforms. 

160. Therefore, Defendant’s representation set forth in Paragraph 159 is false and 

misleading and constitutes deceptive acts or practices in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a). 

VIOLATION OF THE CAN-SPAM ACT 

161. The CAN-SPAM Act, 15 U.S.C. § 7701 et seq., became effective on January 1, 

2004, and has since remained in full force and effect. 

162. Section 3(2)(A) of the CAN-SPAM Act, 15 U.S.C. § 7702 (2)(a) states that “[t]he 

term ‘commercial electronic mail message’ means any electronic mail message the primary 

purpose of which is the commercial advertisement or promotion of a commercial product or 

service (including content on an Internet website operated for a commercial purpose).” 

163. Section 3(5) of the CAN-SPAM Act, 15 U.S.C. § 7702 (5) states, in pertinent 

part, that “[t]he term ‘electronic mail address’ means a destination, commonly expressed as a 

string of characters, consisting of a unique user name or mailbox ... and a reference to an 

Internet domain,... whether or not displayed, to which an electronic mail message can be sent or 

delivered.” 

164. Section 3(6) of the CAN-SPAM Act, 15 U.S.C. § 7702 (6), states that “[t]he term 

‘electronic mail message’ means a message sent to a unique electronic mail address.” 

165. Section 3(9) of the CAN-SPAM Act, 15 U.S.C. § 7702 (9), states, in pertinent 

part, that “[t]he term ‘initiate,’ when used with respect to a commercial electronic mail message, 

means to originate or transmit such message or to procure the origination or transmission of such 

message ... .” 

50 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 51 of 53 PageID #: 51 

166. Section 3(13) of the CAN-SPAM Act, 15 U.S.C. § 7702 (13), states that “[t]he 

term ‘protected computer’ has the meaning given that term in section 1030 (e)(2)(B) of title 18. 

Section 1030 (e)(2)(B) of Title 18 states that: “[t]he term ‘protected computer’ means a 

computer ... which is used in or affecting interstate or foreign commerce or communication, 

including a computer located outside the United States that is used in a manner that affects 

interstate or foreign commerce or communication of the United States.” 18 U.S.C. § 1030 

(e)(2)(B). 

167. Section 5(a)(2) of the CAN-SPAM Act, 15 U.S.C. § 7704 (a)(2), states: 

It is unlawful for any person to initiate the transmission to a 

protected computer of a commercial electronic mail message if 

such person has actual knowledge, or knowledge fairly implied on 

the basis of objective circumstances, that a subject heading of the 

of the message would be likely to mislead a recipient, acting 

reasonably under the circumstances, about a material fact 

regarding the contents or subject matter of the message (consistent 

with the criteria used in enforcement of section 45 of this title). 

168. Section 7(e) of the CAN-SPAM Act, 15 U.S.C. § 7706 (e), states that in any 

action to enforce compliance through an injunction with Section 5 (a)(2) and other specified 

sections of CAN-SPAM, the FTC need not allege or prove the state of mind required by such 

sections. 

169. Section 7 (a) of the CAN-SPAM Act, 15 U.S.C. § 7706 (a), states: 

[T]his chapter shall be enforced by the [FTC] as if the violation of 

this chapter were an unfair or deceptive act or practice proscribe 

under section 18(a)(1)(B) of the [FTC Act] (15 U.S.C. § 

57a(a)(1)(B)). 

51 
Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 52 of 53 PageID #: 52 

Count IX 

Misleading Subject Headings 

170. In numerous instances, as described in Paragraphs 86-100, Defendant initiated the 

transmission, to protected computers, of commercial email messages that contained subject 

headings that would be likely to mislead a recipient, acting reasonably under the circumstances, 

about a material fact regarding the contents or subject matter of the message. 

171. Defendant’s acts or practices, as described in Paragraph 170, violate Section 

5(a)(2) of the CAN-SPAM Act, 15 U.S.C. § 7704(a)(2). 

CONSUMER INJURY 

172. Consumers have suffered and will continue to suffer substantial injury as a result 

of Defendant’s violations of the FTC Act and the CAN-SPAM Act. Absent injunctive relief by 

this Court, Defendant is likely to continue to injure consumers and harm the public interest. 

PRAYER FOR RELIEF

 Wherefore, Plaintiff requests that the Court: 

A. Enter a permanent injunction to prevent future violations of the FTC Act and the 

CAN-SPAM Act by Defendant. 

B. Award monetary relief against PCH and in favor of Plaintiff for violations of the 

CAN-SPAM Act. 

C. Award such relief as the Court finds necessary including rescission or reformation 

of contracts, the refund of money, or other relief necessary to redress injury to consumers. 

D. Award other relief within the Court’s power to grant. 

E. Award any additional relief as the Court determines to be just and proper. 

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Case 2:23-cv-04735 Document 1 Filed 06/26/23 Page 53 of 53 PagelD #: 53 

~ 

Respeclful ly submitted. 

FEDERAL TRADE COMMISSION 

Northeast Region 

One BO\\ ling Green. Suite 318 

Ne"v York. NY I0004 

Tel.: 212-607-2809 

Fax: 212-607-2822 

Email: sdiacosavvas@tk.gov 

MIRY KIM 

ELSIE B. KAPPLER 

JOSH DOAN 

FEDERAL TRADE COMMISSION 

Division of Marketing Practices 

Bureau ofConsumer Protection 

600 Pennsylvania Ave.. N.W., CC-6316 

Washington, DC 20580 

Tel.: 202.326.3622 (MK) 

Tel.: 202.326.2466 (EBK) 

Tel.: 202.326.3187 (JD) 

Fax: 202.326.3395 

Email: mkim(a)ftc.gov 

Email: ckappler@ltc.gov 

Email: jdoan@rtc.gov 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

53