Latest news with #PrizePatrol
Epoch Times
30-04-2025
- Business
- Epoch Times
FTC Refunds $18 Million to Eligible Publishers Clearing House Customers
The Federal Trade Commission (FTC) Each check must be cashed within 90 days and arrives automatically—no forms or fees are required. The payments flow from a June 2023 court order that required PCH to pay $18.5 million in consumer redress and revamp its online sales and sweepstakes practices. Regulators accused the company of relying on 'dark patterns'—design choices and wording that misled shoppers into believing a purchase was needed to enter a contest or would boost their odds of winning. Emails allegedly carried subject lines such as 'High Priority Doc. W-34 Issued,' resembling official tax notices, while web pages implied that 'just one order' could clinch a cash prize. The FTC also alleged that PCH hid shipping charges that averaged 40 percent of an item's price, called orders 'risk-free' even though customers paid return postage, and placed privacy warnings about data-sharing deep in fine print. Only shoppers who opened one of the flagged emails and completed a purchase qualify for a refund. The FTC urges consumers to ignore anyone who asks for money or account details in exchange for a check. The refund program is part of a broader FTC effort to curb manipulative marketing, the FTC noted. The FTC also reported its enforcement actions returned $338 million to consumers in 2024. Related Stories 1/14/2025 4/22/2025 PCH, famous for its 'Prize Patrol' surprise-check presentations, has faced mounting financial pressure from the case and declining print sales. On April 9, the company filed for Chapter 11 protection in New York, Under the 2023 PCH noted in a statement that the checks being sent out now by the FTC were from the 2023 settlement. 'While we disagreed with the FTC's assertions at the time, we were glad to have resolved the matter and move forward continuing to do what we do best—provide consumers fun entertainment and games powered by our famous chance to win,' PCH Vice President for Consumer Affairs Chris Irving said. The FTC advises prize seekers that legitimate contests never require a purchase. Anyone contacted by someone claiming they must pay to collect a PCH or FTC payment should report the scam at Refund checks were
Yahoo
13-04-2025
- Business
- Yahoo
Publishers Clearing House Bankrupt After Decades of Delivering Big Checks
For decades, the Publishers Clearing House Prize Patrol—complete with oversized checks and celebratory balloons—has symbolized life-changing moments for sweepstakes winners across the country. But on Wednesday, the company behind those iconic doorstep surprises filed for bankruptcy. While the filing signals plans to restructure, it has left many questioning the future of its famous giveaways. Here's everything we know about Publishers Clearing House's bankruptcy filing. According to Reuters, Publishers Clearing House has filed for bankruptcy in Manhattan, entering the process with only $490,000 in cash and roughly $40 million in outstanding debts to employees, vendors, service providers, and landlords. As part of its restructuring, the company plans to phase out its legacy catalog mailings and magazine subscription services to concentrate on its growing digital advertising and online gaming operations. Court documents reveal that Publishers Clearing House had largely exited its print marketing business by 2024 and now generates revenue through digital ads featured in free-to-play online games that offer chances to win cash prizes. In addition to streamlining its focus, the company will explore a potential sale of its assets or seek a strategic partner to back a long-term growth plan centered on its digital platforms. Publishers Clearing House has secured a $5.5 million loan from Prestige Capital to fund its operations throughout the bankruptcy process. Publishers Clearing House's bankruptcy filing comes after a steady decline in its traditional direct mail marketing operations. In 2018, the company's magazine and merchandise advertising business generated $879 million in revenue. However, the rise of online shopping—and the acceleration of that trend during the COVID-19 pandemic—contributed to mounting financial losses. According to court filings, the company also faced rising costs related to printing, mailing, and television advertising, which eventually became unsustainable. These mounting challenges forced Publishers Clearing House to scale back its once-core direct mail operations, setting the stage for its eventual bankruptcy filing. Since its founding in 1953 by Harold and LuEsther Mertz, along with their daughter Joyce, Publishers Clearing House has awarded over half a billion dollars in prizes, according to bankruptcy court filings. The company currently employs 105 people and generates an annual gross revenue of about $38 million. Each week, Publishers Clearing House pays out approximately $30,000 to prize winners, with roughly $1.8 million owed to recent recipients. In addition, the company offers lifetime prizes and owes winners about $26 million over the next 60 years, as outlined in court documents. Despite its financial challenges, Publishers Clearing House intends to continue its sweepstakes operations during the bankruptcy process. The company will even name a winner of its weekly $10,000 sweepstakes later this week. 'Our world-renowned sweepstakes will remain a cornerstone of our brand, and we are committed to offering free-to-play entertainment and awarding prizes as we navigate this process—ensuring the legacy of Publishers Clearing House endures,' said CEO Andy Goldberg in a statement on Wednesday. While Publishers Clearing House faces significant financial challenges, its path to recovery is not entirely out of reach. The company's shift towards digital advertising and online gaming offers a potential avenue for future growth, as these sectors continue to expand. However, the road to recovery will depend on whether Publishers Clearing House can successfully pivot to its digital platforms, attract a strategic partner, or find a buyer for its assets. If it can achieve this while continuing to uphold its legacy sweepstakes, there remains a possibility for a comeback. But with ongoing financial obligations, including millions owed to prize winners, the company's future remains uncertain as it works through its restructuring process. Read the original article on GEEKSPIN. Affiliate links on GEEKSPIN may earn us and our partners a commission. Sign in to access your portfolio
The Hill
10-04-2025
- Business
- The Hill
Publishers Clearing House, known for its ‘Prize Patrol' sweepstakes, files for bankruptcy
NEW YORK (AP) — Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising' model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future,' CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a 'business-as-usual manner' throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018. As of the end of March, PCH had total assets of nearly $11.7 million and total liabilities of about $65.7 million, court documents show. The company currently has 105 employees and an annual gross revenue of about $38 million.
The Independent
10-04-2025
- Business
- The Independent
Publishers Clearing House, known for its 'Prize Patrol' sweepstakes, files for bankruptcy
Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising" model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future," CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a "business-as-usual manner" throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018. As of the end of March, PCH had total assets of nearly $11.7 million and total liabilities of about $65.7 million, court documents show. The company currently has 105 employees and an annual gross revenue of about $38 million.
Yahoo
10-04-2025
- Business
- Yahoo
Publishers Clearing House, known for its 'Prize Patrol' sweepstakes, files for bankruptcy
NEW YORK (AP) — Publishers Clearing House, a decades-old marketing and sweepstakes company known for doling out large 'Prize Patrol' checks, has filed for Chapter 11 bankruptcy protection. In an announcement this week, PCH said it was using the bankruptcy process to 'finalize a shift away' from its legacy business of direct-mail, retail merchandise and magazine subscriptions. The company is hoping to instead transition to a 'pure digital advertising" model, where it will continue to offer free-to-play entertainment and prizes. The Chapter 11 proceedings, filed in New York on Wednesday, arrive amid growing financial strain for PCH — which has struggled with rising operational costs and changing consumer habits in recent years. Pivoting from its old way of doing business will help the company break free from past constraints and 'establish a strong foundation for our future," CEO Andy Goldberg said in a statement. But that doesn't mean the famous sweepstakes are going away. PCH says it plans to operate in a "business-as-usual manner" throughout the bankruptcy process — noting that the 'Prize Patrol' team will continuing to deliver awards across the U.S. The company says it's lined up debtor-in-possession financing from Prestige Capital to fund operations through its restructuring. PCH's roots date back to 1953 — when Harold and LuEsther Mertz and their daughter, Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering. The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and 'As Seen on TV' accessories, in the years that followed. Its in-person 'Prize Patrol' team was formed in 1989. PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials. In Wednesday court documents, the company said it has awarded over half a billion dollars in prizes and continues to attract millions of contestants today. But its operations haven't been without financial strain — particularly in recent years. 'While PCH's direct mail and e-commerce programs were profitable for decades, changing patterns of consumer behavior, costs and competition, along with a declining pool of new prospecting names, negatively impacted the business, resulted in losses beginning in 2022,' William H. Henrich, co-chief restructuring officer for PCH, wrote in a court declaration Wednesday. Henrich pointed to a handful of cost pressures — including rising shipping and postal rates, inventory and supply chain challenges that have continued since the start of the COVID-19 pandemic and rising competition from major retailers today, like Walmart and Amazon, that have dominated the e-commerce space. PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements over the years — most recently, Wednesday's court documents note, paying $18.5 million to resolve allegations from the Federal Trade Commission in 2018. As of the end of March, PCH had total assets of nearly $11.7 million and total liabilities of about $65.7 million, court documents show. The company currently has 105 employees and an annual gross revenue of about $38 million. Sign in to access your portfolio
