How does publishers clearing house have any money?

[Anonymous]

My grandma and I did it together as a kid. You got stamps and ordered magazines or something and got contest entries. I'm not exactly sure. Anyway how does this company have money to give away? I'm guessing if it was a fraud we would have learned about it in the past 30 years so I'm just trying to figure out the current logistics of it.

[Anonymous]

Lots of elderly buy the magazines thinking they have a chance to win. Also inertia - lot of people don’t check credit card statements and cancel in year 2

[Anonymous]

Of all the things to care about...

[Anonymous]

Actually there was a tmz article this year about them getting sued.

And the Senate investigated in 2015.

They prey on the elderly and use deceptive marketing.

[Anonymous]

Their whole racket is right there in the name: Publisher's Clearing House.

To enter the sweepstakes, you have to buy magazine subscriptions, which they get at a massive discount from the publishers.

Every so often, they will send you a letter saying "your name was drawn and you have advanced to the next round, but you have to buy more magazine subscriptions to stay in the game!" If you don't buy more, you're not eligible for the prize.

By the end of the year (or however long each game lasts) you'll have bought like 5 magazine subscriptions and spent $50-100. The prize money comes from that cash you gave them to buy subscriptions that cost them pennies, and PCH pockets the remainder.

[Anonymous]

I stopped entering their sweepstakes because it takes for ever to register and they hound you to subscribe to something before you can complete the registration. Then the constant emails are annoying. When I see the people on TV who are supposedly winners, I wonder if they are actors or if they are actual winners, what did they do to win. It all seems like a scam.

[Anonymous]

It's the real deal. They give away the money and make it from selling magazine subscriptions.

[Anonymous]

Anonymous wrote:It's the real deal. They give away the money and make it from selling magazine subscriptions.

?

[Anonymous]

You may already be a winner!!!!!!

Don’t worry, you’re not.