American Family Publishers Class Action

Lieff Cabraser served as co-lead counsel for plaintiffs in a suit against American Family Enterprises, sponsors of the American Family Publishers sweepstakes. Plaintiffs alleged that American Family Publishers made material misrepresentations and nondisclosures by falsely stating or suggesting that persons receiving the sweepstakes materials had won a prize and/or they would enhance their chances of winning a prize by purchasing magazine subscriptions or merchandise.

In September 2000, the United States District Court granted final approval of a $33 million settlement of the class action. In April 2001, over 63,000 class members received refunds averaging over $500 each, representing 92% of their eligible purchases. The case has concluded.

As an integral part of the settlement, American Family Publishers also agreed to changes in its mailing materials, such as:

Inclusion of clear and conspicuous "No Purchase Necessary" messages in the Official Rules and the copy of the mailings;
Printing Official Rules in 8 point type and in such a way that they may be retained by consumers after entering the sweepstakes;
Clear disclosure of the estimated odds of winning the sweepstakes prizes in the Official Rules;
No representation that the recipient is a winner unless in fact the recipient is a winner;
Headline copy which is clear and readily understandable;
No mailing of solicitations that, when viewed in their entirety, simulate government documents;
Notification to consumers as to how they can be removed from American Family Publishers' mailing lists;
Clarification of deadlines for returning sweepstakes entries;
No representation that a recipient's order history enhances chances of winning the sweepstakes;
Return of all sweepstakes entries, whether or not they contain an order, to the same city;
No implication that failure to respond will result in the loss of any previously submitted entries; and
A proactive program of communicating with frequent enterers reminding them that no purchase is necessary to enter or win.