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American Home Products Loses Class Action Sweepstakes

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The giant sweepstakes company and magazine hawker, already operating under bankruptcy protection, has agreed to pay $33 million to settle a series of consumer class action lawsuits and to be more forthright in its future promotions.

The company's new mailings will include the words "No Purchase Necessary" in bold type and will not use the words "You're a winner" unless the recipient has actually won something.  The mailings will also include the estimated odds of winning and will use a larger type size to print the contest rules. 

Plaintiff's lawyers said many consumers spent hundreds and even thousands of dollars on magazine subscriptions, hoping to improve their chances of winning one of the multi-million-dollar sweepstakes.

In separate agreements earlier in the year, the company paid nearly $7 million to 40 states and the District of Columbia to resolve similar complaints.

Consumers who want a claim form to participate in the settlement should go to http://www.afpsettlement.com or call (888) 469-5408. 

As part of the latest settlement, the company has also set up a mini-sweepstakes -- open to anyone who anyone who bought anything from a sweepstakes mailing after January 1992.  The mini-sweepstakes will give away ten prizes of $100,000.

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