State signs settlement over sweepstakes ads

Thursday, Sept. 14, 2000 | 11:48 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Nevada is among 47 states that have signed a settlement with American Express Publishing Corp., which has agreed to change a misleading advertisement on its sweepstakes.

American Express publishes and sells magazines, books and related products through direct mail solicitations and promotes the sales through a sweepstakes.

Attorney General Frankie Sue Del Papa said Wednesday the settlement prohibits AMEX from saying a consumer is a winner or about to become a winner unless he or she is actually a winner or about to become a winner.

Del Papa said, "One of our main concerns is that consumers who receive sweepstakes mailings understand they do not have to buy anything to have a chance to win, and that buying will not help their chances of winnings."

Del Papa said the company will not have to make any restitution because no consumer lost more than $110 annually through magazine subscriptions offered through AMEX. However Nevada will receive $3,488 as its share of the cost of the suit.

The attorneys general in the states have also entered into similar settlements with U.S. Sales Corp., Time Inc. and Publishers Clearing House.