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Iowa AG Warns Residents About Publishers’ Clearing House

By Mark Huffman
ConsumerAffairs.com

May 4, 2007

• Scammers Pretend to be from PCH • Iowa AG Warns Residents About Publishers’ Clearing House • More Charges Against PCH --- • Consumer Complaints about PCH

Iowa Attorney General Tom Miller has issued a warning to seniors in his state to be wary of sweepstakes mailings that make it appear they are close to winning a major sweepstakes prize.

He singled out Publishers Clearing House, saying the company’s mailings suggest the chances of winning may go up if they order more merchandise or magazines.

“Hundreds of older Iowans are sending thousands of dollars each to Publishers Clearing House or other sweepstakes promoters in the false belief that they are close to winning a huge prize,” Miller said. “This causes an enormous drain and hardship for elderly Iowans, and a very difficult situation for families and care-givers.”

Miller sounded the warning at a news conference where he was joined by Ken Reif of Eastern Iowa and Mike Heller of Des Moines.

Reif’s 79-year-old uncle and Heller’s 84-year-old father have spent thousands of dollars each and accumulated piles of books and products sold by sweepstakes promoters.

“Buying magazines or products does NOT increase your chance of winning,” Miller said. “By law, sweepstakes prizes cannot be awarded on the basis of whether you purchase something. In fact, most winners of major PCH prizes did not place an order with their sweepstakes entries.”

Miller also urged Iowans not to believe “personalized” letters that might lead them to believe sweepstakes representatives wanted them to win or they were close to winning.

Some mailings show maps to the consumer’s home, or give tips on what to say if a “prize patrol” comes to their door. He says some older Iowans have even canceled a trip to be home when the prize patrol might be expected.

“Many Iowans in their 70s, 80s and 90s receive repeated sweepstakes mailings from Publishers Clearing House,” he said. “Many of them have the strong, and wrong, impression that they are close to winning -- and that ordering more magazines or merchandise could make the difference.”

Miller maintains that Iowans of advanced age have sent Publishers Clearing House and other sweepstakes operations several thousand dollars in a single year, and, for some Iowans, such payments go on year after year.

Ken Reif’s uncle, Clinton Reif, received 162 sweepstakes mailings from Publishers Clearing House in a two-year period, and he responded by spending more than $4,000 ordering products.

Most of the merchandise was stacked, unopened, in his home and garage. Ken Reif showed a home video of his uncle’s garage and house, with piles of solicitations and boxes of products, mostly unopened.

Miller said his office has determined that 2,383 Iowans sent Publishers Clearing House at least $500 last year, and 852 Iowans sent $1,000 or more. Fifty sent more than $3,000 in 2006 – and their average age was 76 years old, according to the Consumer Protection Division.

Miller urged relatives, friends and care-givers to step in if they spotted warning signs that older Iowans may be vulnerable to sweepstakes solicitations:

• The older Iowan receiving numerous sweepstakes solicitation mailings because they are on lists mined by sweepstakes companies.

• The older Iowan receiving a large volume of magazine or other product purchases from a sweepstakes promoter. The items often are given away as gifts or stored unopened or unused.

• The older Iowan having a preoccupation with winning a major prize. For example, calendars may be marked with the date of the next big give-away, or several hours a week may be devoted to responding to sweepstakes mailings.

• The older Iowan having difficulty paying bills or covering expenses. The volume of orders may divert much of a person’s fixed income, or the consumer may ignore a developing financial crisis because he or she is convinced the Prize Patrol will soon deliver a big check.

“We certainly can help anyone get off of Publishers Clearing House lists, we can provide advice, and we may be able to help obtain refunds for PCH customers,” Miller said.

He said the office is investigating Publishers Clearing House and looking into sweepstakes more broadly. He said the investigation thus far has determined that 2,383 Iowans sent Publishers Clearing House $500 or more in 2006. Fifty residents, he said, sent $5,000 or more. Their average age was 76.

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