AFP Settlement Approved
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by Chief Marketer Staff
The U.S. District Court of New Jersey in December approved a settlement in a class-action suit filed against Jersey City, NJ-based American Family Enterprises, operator of the American Family Publishers direct-mail sweepstakes. The settlement would cover all outstanding litigation against the company, which filed for Chapter 11 bankruptcy protection in October (December promo). In the settlement, AFP admits no wrongdoing but agrees to establish a $33 million fund to pay consumers who can certify that they believed purchasing magazine subscriptions was necessary to become eligible for AFP prizes. The company has also agreed to pay legal, administrative, and notice costs associated with the settlement.
