DM Sweeps Industry Faces Review By Attorneys General

The direct mail sweepstakes industry, which has been under attack both by state and federal authorities in recent months, will be strongly defended today at a hearing before 10 state attorneys general in Indianapolis.

Robert Sherman, general counsel for the Direct Marketing Association, is scheduled to discuss in detail the self-regulatory programs of both the DMA and the direct mail sweepstakes industry. Additionally, he will expound on the industry’s programs of educating consumers about sweepstakes promotions and cite the industry’s view of legitimate and illegitimate sweepstakes programs.

Linda Goldstein, chairman emeritus, Promotion Marketing Association, will review the popularity of sweepstakes programs with the general public.

Michael Pashby, executive director, Magazine Publishers Association, is slated to discuss how magazines target potential subscribers and use sweepstakes promotions to increase circulation.

Participating in the hearing hosted by Indiana Attorney General Jeffrey Modisett and chaired by Wisconsin Attorney General James Doyle, will be the attorneys general of Florida, Ohio, Oklahoma, Michigan, Mississippi, Missouri, Pennsylvania and Texas.

There were indications yesterday that the hearings would be monitored by representatives of two subcommittees of the U.S. Senate, which late last year began a joint investigation into the direct mail sweepstakes industry.

The Senate’s Permanent Subcommittee on Investigations, chaired by Sen. Susan M. Collins (R-ME), and the International Security, Proliferation and Federal Services subcommittee led by Sen. Thad Cochran (R-MS), expect to hold joint hearings on the industry some time next month. At deadline no specific date had been set.