Eligible consumers will be contacted during the next year through a joint effort by the Attorney General's Consumer Protection Unit and a third-party refund administrator. The administrator will provide a claim form to eligible consumers. Lance had alleged that Reader's Digest Association violated the Idaho Consumer Protection Act by mailing misleading and deceptive sweepstakes solicitations to Idaho consumers. Reader's Digest Association mails millions of sweepstakes offers annually. The mailings also offer subscriptions to Reader's Digest.
Many mailings solicit the purchase of other magazines, books, audio tapes and video tapes.
This is the fourth major sweepstakes settlement since the state attorneys general held public hearings on sweepstakes sales promotions. The National Association of Attorneys General, in a subsequent report, recommended that sweepstakes offers include a standardized fact sheet. The fact sheet makes clear that no purchase is required to win and explains the odds of winning. Since the hearings, Lance and other state attorneys general have reached consumer protection settlements with US Sales Corporation, Time, Inc., Publishers Clearing House and, now, Reader's Digest Association. The settlement requires Reader's Digest Association to include a sweepstakes facts disclosure with future sweepstakes offers.