are they governed by any regulations ?
Yes, by deceptive Mail Prevention and Enforcement Act of 2000, which regulates direct mail businesses.
Publishers Clearing House
In the 1990s PCH and its primary competitor, AFP, experienced a series of legal troubles due to concerns that their mailings misled consumers about their odds of winning and implied that magazine purchases increased their chances. This led to the Deceptive Mail Prevention and Enforcement Act of 2000, which regulates direct mail businesses
where does publishers clearing house get their money from By selling merchandise, magazine subscriptions and operating several prize-based websites. what are these organizations ? It is a direct marketing company that markets merchandise and magazine subscriptions with sweepstakes and prize-based games.
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Publishers Clearing House [SEP] Government regulation
In the 1990s PCH and its primary competitor, AFP, experienced a series of legal troubles due to concerns that their mailings misled consumers about their odds of winning and implied that magazine purchases increased their chances. This led to the Deceptive Mail Prevention and Enforcement Act of 2000, which regulates direct mail businesses. At the senate hearings regarding this Act, PCH said most consumers were not confused about their chances of winning or that purchases did not increase their chances. The company said less than five percent of participants spend more than $300. Government officials from California said 5,000 local consumers paid more than $2,500 each in magazine purchases under the false belief that they were increasing their odds of winning the sweepstakes.