American Family Publishers Settles Claims

American Family Publishers, the magazine direct marketer made famous by spokesman Ed McMahon, said it will set up a $3-million fund to settle claims that it used deceptive marketing in sweepstakes. In an agreement with the state attorneys general of Florida, Indiana, South Carolina and West Virginia, the company admitted no wrongdoing but agreed to state in its mailings clear and conspicuous disclaimers, prominent odds disclosure and multiple “no purchase necessary” reminders. Jersey City, N.J.-based AFP also committed to better identify and assist potentially vulnerable consumers. The settlement concluded a series of court actions that began in February 1998.