The direct marketing company Publishers Clearing House, which uses sweepstakes to sell magazine subscriptions, agreed on Monday to pay $18.5 million to settle a lawsuit brought by the Federal Trade Commission (FTC) for tricking consumers into buying its products.
The suit claimed that the company was using dark patterns to force customers into paying for products or surrendering personal data.
The FTC said that Publishers Clearing House coerced customers by falsely implying that purchasing a subscription would increase their odds of winning its sweepstakes.
Publishers Clearing House is also accused of charging customers– especially elderly customers — hidden fees during purchases, sending deceptive marketing emails and misleading customers about how their data was being used.
