Publishers Clearing House has agreed to pay a total of $3.5 million to Colorado and 33 other states for allegedly violating a 2001 consent decree prohibiting it from using false and deceptive ads to entice consumers to participate in its sweepstakes.

Colorado will receive $320,000 out of the settlement, according to the Colorado Attorney General's Office.

The $3.5 million settlement stems from allegations that Publishers Clearing House violated a $34 million settlement reached in 2001 in which Publishers agreed to numerous restrictions on its sweepstakes promotion practices.

The 2001 settlement stemmed from allegations that Publishers used sweepstakes hype to convince recipients that buying something from the company would improve their chances of winning the grand prize, according to the attorney general's office.

After the 2001 settlement, the Colorado Attorney General's Office continued to monitor the sweepstake solicitations and noticed that there was not an appreciable change in the company's solicitations, according to a news release from Mike Saccone, spokesman for Colorado Attorney General John Suthers.

Rather than face contempt charges in court, Saccone said that Publishers Clearing House has agreed to a number of conditions.

These include changing the language the company uses in its mailings that insinuate that the more consumers spend with Publishers Clearing House, the more likely they are to win prizes.

Also the firm will cease using the tactic of sending a communication from the "Board of Judges" that indicates the recipient is close to winning and not notify a recipient that his or her entry code has a "key code" for the winning entry.

Publishers Clearing House has also agreed to hire an ombudsman to review the company's solicitations on a quarterly basis.

Suthers said that the tactics can be particularly influential on senior citizens.

Howard Pankratz: 303-954-1939 or