States Looking Into Mailings of Reader’s Digest Sweepstakes

Reader’s Digest Assn. Inc. is under scrutiny by Indiana authorities who want to see if the company used misleading sweepstakes come-ons. It was also included in a broader review in Connecticut.

The Pleasantville, N.Y.-based publishing company said Tuesday that it had not been notified of any formal investigation, and spokeswoman Donna Pierpont said all mailings were honest and legal.

Indiana Atty. Gen. Jeff Modisett--who last month sued American Family Publishers, accusing it of operating a misleading sweepstakes campaign--said Monday that he is scrutinizing the Reader’s Digest sweepstakes.

And the office of Connecticut Atty. Gen. Richard Blumenthal said Tuesday that it had sent Reader’s Digest and 109 other companies a letter in October charging that some mailings failed to adequately disclose the retail value of prizes or odds of winning.

Pierpont said no one at Reader’s Digest received the letter.

USA Today reported Monday that Florida also was looking into possible violations by Reader’s Digest. Assistant Deputy Atty. Gen. Les Garringer in Tallahassee said Tuesday that his state was not formally investigating the magazine publisher.

The company was named along with other sweepstakes companies in a private lawsuit in Florida, said another company spokeswoman, Lesta Cordil.

Last month, Jersey City, N.J.-based American Family Publishers agreed with 32 states and the District of Columbia to stop telling consumers they are winners or have already won a prize unless that actually happens.