A Struggle to Go Digital—and Stay Ethical
Though PCH still draws 36 million visitors annually to its sweepstakes and online game platforms, its ambitions in digital marketing hit turbulence. The company had hoped to rely on first-party data to replace outdated advertising models, but was hamstrung by delays in Google’s cookie phaseout and a wider slowdown in automated ad spending.
Legal troubles also clouded its skies. In 2018, the Federal Trade Commission accused PCH of using deceptive interfaces to nudge consumers into buying products under the guise of sweepstakes entries. That case ended in a hefty $18.5 million settlement in 2023, further straining its resources and reputation.
What’s Next: A Buyer, a Restructure, and a Hopeful Reboot
In its bankruptcy strategy, PCH plans to sell off assets while retaining and expanding its sweepstakes-driven digital platform. With 105 employees and an annual revenue of $38 million, it hopes to emerge slimmer and more agile.
Henrich said the goal is to “shed burdensome legacy debts and leasehold interests” and become a modern, efficient business. As part of the Chapter 11 process, the company will request the appointment of a consumer privacy ombudsman to protect sensitive customer data during the asset sale.
