Topeka — About 100 Kansans could be eligible for refunds under a lawsuit settlement between the Reader's Digest Association and the attorneys general of 32 states.
The lawsuit had alleged that Reader's Digest sweepstakes mailings led recipients to believe they needed to subscribe to a magazine to enter the contest, or that they'd have a better chance of winning if they subscribed. Actually, their chances in the sweepstakes were the same whether or not they subscribed.
The settlement sets aside about $6 million nationally for people who spent more than $2,500 in 1998, 1999, or 2000 for products offered through the sweepstakes.
The Kansas Attorney General's office estimated that about 100 Kansans will qualify. They will be contacted directly to get their settlement.
Under the settlement, announced Thursday, Reader's Digest agreed to:
Not say a consumer is a winner or about to become a winner, or that they have a better chance of winning after a purchase.
Establish a "Do Not Contact List."
Clearly disclose when subscriptions are renewed automatically and provide notice so a consumer can cancel the subscription.
Severely restrict the use of "customer only" sweepstakes.
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