American Family Publishing
Encyclopedia
American Family Publishers, an originally Newark, New Jersey
, then Jersey City, New Jersey
-based company that sold magazine subscriptions, was best known for running sweepstakes
in which a large amount of money was offered as the grand prize (in a range of several hundred thousand to one or more million dollars). The winner was chosen at random, by a professional auditing company, from among all who respond to the sweepstakes, regardless of whether a magazine subscription was purchased.
The company's tactics attracted controversy, since the mailings that accompanied the sweepstakes promotions, which invariably included a form via which the recipient could purchase magazine
subscriptions, frequently included language that seemed to indicate that the recipient had already won a prize, or was a finalist who had improved chances of winning a prize, when this was not the case.
In a related phenomenon connected to the company's promotion tactics, news stories reported cases of elderly Americans travelling to Florida
in an effort to collect the money (the company, at least for some time, routed their mail through St. Petersburg, Florida), that they believed they had won, because of the promotional language contained in the sweepstakes entry forms (for instance, their frequently used phrase You may have already won $10,000,000!, although mitigated by an introductory line that stated "If you have the winning number...," led people to believe that they had already won the major prize).
Television exposes have also aired that claim to reveal, through garbology
, that the entries of people who did not order magazines were thrown away rather than entered into a random drawing; however, AFP claimed that this came from a misunderstanding of how AFP processed entries at that time. Most of AFP's entry envelopes had windows on the back revealing an OCR
code to identify the customer and sweepstakes, as well as any magazine subscription stamps on the entry form. If a stamp appeared in the proper window, the envelope was opened for further processing; if not, the envelope was scanned for entry in the sweepstakes, then thrown away unopened. A separate checkbox below the return address also allowed AFP to process address corrections without opening the envelope.
These claims eventually led to litigation by several states' attorneys general against the company, resulting in court orders requiring changes in the way the company promoted the sweepstakes. The company complied, but increased lawsuits resulted in the company, which was 50% owned by Time, Inc. and changed its name to American Family Enterprises at the time that Time Inc. took a more hands-on role in the business, filing for bankruptcy in 1998.
(PCH) was a competitor to American Family Publishing that ran similar sweepstakes. The two companies were often mistaken for each other, with Ed McMahon
and Dick Clark, the spokespeople
for AFP, mistaken for representatives of the more well known PCH. PCH continues to remain in business and promote its products by means of sweepstakes.
A company called American Family Publishing, which is confused with American Family Publishers, now uses online classified ads to try to lure people into sending them money deposits to help make "crafts" or do at home "typing." The Federal Trade Commission
has received numerous consumer complaints against American Family Publishing.
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
, then Jersey City, New Jersey
Jersey City, New Jersey
Jersey City is the seat of Hudson County, New Jersey, United States.Part of the New York metropolitan area, Jersey City lies between the Hudson River and Upper New York Bay across from Lower Manhattan and the Hackensack River and Newark Bay...
-based company that sold magazine subscriptions, was best known for running sweepstakes
Sweepstakes
The United States consumer sales promotion known as a sweepstake has become associated with marketing promotions targeted toward both generating enthusiasm and providing incentive reactions among customers by enticing consumers to submit free entries into drawings of chance...
in which a large amount of money was offered as the grand prize (in a range of several hundred thousand to one or more million dollars). The winner was chosen at random, by a professional auditing company, from among all who respond to the sweepstakes, regardless of whether a magazine subscription was purchased.
The company's tactics attracted controversy, since the mailings that accompanied the sweepstakes promotions, which invariably included a form via which the recipient could purchase magazine
Magazine
Magazines, periodicals, glossies or serials are publications, generally published on a regular schedule, containing a variety of articles. They are generally financed by advertising, by a purchase price, by pre-paid magazine subscriptions, or all three...
subscriptions, frequently included language that seemed to indicate that the recipient had already won a prize, or was a finalist who had improved chances of winning a prize, when this was not the case.
In a related phenomenon connected to the company's promotion tactics, news stories reported cases of elderly Americans travelling to Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
in an effort to collect the money (the company, at least for some time, routed their mail through St. Petersburg, Florida), that they believed they had won, because of the promotional language contained in the sweepstakes entry forms (for instance, their frequently used phrase You may have already won $10,000,000!, although mitigated by an introductory line that stated "If you have the winning number...," led people to believe that they had already won the major prize).
Television exposes have also aired that claim to reveal, through garbology
Garbology
The primary academic meaning of garbology is the study of refuse and trash. As an academic discipline it was pioneered at the University of Arizona and long directed by William Rathje. The project started in 1973, originating from an idea of two students for a class project...
, that the entries of people who did not order magazines were thrown away rather than entered into a random drawing; however, AFP claimed that this came from a misunderstanding of how AFP processed entries at that time. Most of AFP's entry envelopes had windows on the back revealing an OCR
Optical character recognition
Optical character recognition, usually abbreviated to OCR, is the mechanical or electronic translation of scanned images of handwritten, typewritten or printed text into machine-encoded text. It is widely used to convert books and documents into electronic files, to computerize a record-keeping...
code to identify the customer and sweepstakes, as well as any magazine subscription stamps on the entry form. If a stamp appeared in the proper window, the envelope was opened for further processing; if not, the envelope was scanned for entry in the sweepstakes, then thrown away unopened. A separate checkbox below the return address also allowed AFP to process address corrections without opening the envelope.
These claims eventually led to litigation by several states' attorneys general against the company, resulting in court orders requiring changes in the way the company promoted the sweepstakes. The company complied, but increased lawsuits resulted in the company, which was 50% owned by Time, Inc. and changed its name to American Family Enterprises at the time that Time Inc. took a more hands-on role in the business, filing for bankruptcy in 1998.
Competitors
Publishers Clearing HousePublishers Clearing House
Publishers Clearing House is a multi-channel direct marketing company that offers discounted magazine subscriptions and household merchandise to consumers with the chance to enter to win one of many ongoing sweepstakes...
(PCH) was a competitor to American Family Publishing that ran similar sweepstakes. The two companies were often mistaken for each other, with Ed McMahon
Ed McMahon
Edward Peter "Ed" McMahon, Jr. was an American comedian, game show host and announcer. He is most famous for his work on television as Johnny Carson's sidekick and announcer on The Tonight Show from 1962 to 1992. He also hosted the original version of the talent show Star Search from 1983 to 1995...
and Dick Clark, the spokespeople
Spokesman
A spokesperson or spokesman or spokeswoman is someone engaged or elected to speak on behalf of others.In the present media-sensitive world, many organizations are increasingly likely to employ professionals who have received formal training in journalism, communications, public relations and...
for AFP, mistaken for representatives of the more well known PCH. PCH continues to remain in business and promote its products by means of sweepstakes.
A company called American Family Publishing, which is confused with American Family Publishers, now uses online classified ads to try to lure people into sending them money deposits to help make "crafts" or do at home "typing." The Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
has received numerous consumer complaints against American Family Publishing.
External links
- American Family Publishers to Revise Sweepstakes, Pay $4 Million
- American Family Publishers Settles Sweepstakes Suits
- American Family Publishers Found in Contempt
- 25 states 'newest winners' in AFP contest
- Sweepstakes company settles lawsuit
- American Family Publishers Class Action
- http://www.allbusiness.com/glossaries/american-family-publishers-afp/4962315-1.html