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American Family Publishers Agrees To Pay Damages

By Newsradio 88 Staff

American Family Publishers has agreed to pay $50,000 each to most of the more than 30 states reported to have reached a deal with the sweepstakes publisher to settle alleged deceptive advertising practices, reports Newsradio 88.

At least three states -- Florida, Connecticut and Indiana -- pulled out of talks earlier this year and have filed deceptive sales practice charges against American Family Publishers and star spokesmen Dick Clark and Ed McMahon.

Those states were upset that during negotiations, American Family Publishers sent a mailing in December informing recipients they were one of two winners in their states and that whoever returned the mailing first would get $11 million.