A sweepstakes company that’s filed for bankruptcy protection will NOT escape an investigation by the Iowa Attorney General’s office. Bob Brammer, spokesman for the Attorney General, says American Family Publishers is being probed for possible consumer fraud.American Family, which uses Ed McMahon and Dick Clark to hawk its product, claims it’s going broke fighting several lawsuits alleging deceptive marketing practices. Brammer says Iowa isn’t seeking any money from the publishing house, not yet.American Family Publishers has filed for Chapter 11 bankruptcy, meaning the company intends to reorganize and stay in business. Brammer says the filing will have no influence on the State of Iowa’s investigation.In addition to possibly misleading consumers about their chances of winning the sweepstakes, Brammer says the company is also being investigated for allegedly duping people into thinking they had to buy a product to enter the sweepstakes. He says that is NOT the case.
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