State makes deal with sweepstakes company to end false claims

Ed McMahon and Dick Clark will have to be more careful with what they promise Iowans. Iowa’s Attorney General announced a settlement today with American Family Publishers, the sweepstakes company that employs the two pitchmen. Attorney General Tom Miller says the settlement keeps the company from sending out mailings that exaggerate a person’s chances of winning millions. The agreement also prevents the company from implying that you must buy something to have a chance to win the sweepstakes. Miller says if someone returned a sweepstakes entry they would be bombarded with additional letters from the company.Miller says some people have stacks of unopened magazines and other items sitting in their home that they purchased thinking it would increase their chances of winning millions. He says American Family will pay back 250-thousand dollars and there could be additional money coming. Miller says if you or a member of your family may’ve been fooled by the company, you should call his office. Miller says the agreement allows the state to take action if American Family doesn’t clean up its act.He says this agreement is a key in stopping the sweepstakes companies from bilking Iowans.Miller says they continue working on their case against Publishers Clearinghouse, the largest sweepstakes company in the nation.