Time settles with states over sweepstakes format

Friday, Aug. 25, 2000 | 10:23 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- An out-of-court settlement has been reached between 48 states and Time Inc., which has agreed to change its sweepstakes mailing so consumers know they don't have to buy anything to be eligible to win prizes.

Attorney General Frankie Sue Del Papa said Thursday that Time Inc. tries to get people to subscribe to its magazines, books, audio or video collections in its sweepstakes mailing. She said Time will now include a statement that a purchase will not help the consumer win the sweepstakes and that the consumer has not yet won. And the company must reveal the odds of winning.

The settlement establishes a fund of $4.9 million for reimbursement to consumers nationwide who spent more than $500 in 1997, 1998 or 1999.

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