Publishers Clearing People House Judging Contest Marketing Sells

Publishers Clearing House is a "direct marketing company" (a company that sells other companies' products and services to individuals) that sells "discounted" (offered at a lower-than-usual price) magazine subscriptions to American "households" (groups of people living together in one home). Founded in 1953, it mails "offers" (opportunities to buy something) to households and, more recently, it also uses the Internet.

In 1967, Publishers Clearing House began organizing "sweepstakes," which are contests where the winner is "selected randomly" (with all people having an equal likelihood of being chosen) from a large group of entries. The direct marketing offers informed people that they could enter the sweepstakes by "completing" (filling out) and returning a form in the envelope. Most people thought they also had to pay for a magazine subscription in order to be eligible, so the sweepstakes helped Publishers Clearing House increase sales.

In the United States, it is illegal to require someone to buy a product or service in order to participate in a sweepstakes. Publishers Clearing House got into trouble for "misleading" (not being clear, leading someone to the wrong idea or conclusion) and in 1994 it had to agree to change the ways it "promotes" (advertises; raises awareness about) its sweepstakes. Today, its materials contain statements like, "Buying Won't Help You Win," and "You Have Not Yet Won."

The "top" (largest) prize is $10 million, but the "odds" (likelihood; chance) of winning are currently 1 in 1.75 million. For the people who do win the sweepstakes, the Publishers Clearing House "Prize Patrol" (a group of people who award prizes) comes to their home and lets them know they have won. This is "captured" (filmed; recorded) by video cameras and shown on TV to promote Publishers Clearing House.