NEW YORK — For decades, Publishers Clearing House doled out hefty checks on the doorsteps of hopeful consumers across the U.S., including prizes that boasted lifetime payouts. But some of those winners are now facing an end to the “forever” money they were once promised.
The turmoil arrives amid PCH's ongoing bankruptcy process. The sweepstakes and marketing company filed for Chapter 11 in April, citing growing financial strain that spanned from rising operational costs and changes in consumer behavior.
In July, gaming platform ARB Interactive purchased certain assets from PCH for $7.1 million and established “PCH Digital,” a new platform that hosts sweepstakes opportunities. But under the terms of that deal, ARB says it's not responsible to pay out prizes issued by PCH prior to July 15 — meaning that the company will not pay people who won sweepstakes before that date, with an exception of two unawarded “SuperPrizes” still being promoted.
Pamela Jonker is presented with a $1 million check from the Publishers Clearing House on Jan. 8, in Eagle, Colo.
In a statement sent to The Associated Press, ARB recognized the disappointment for past winners that it said was caused by the bankruptcy process — and noted that it was “committed to restoring and preserving the trust” of the PCH brand going forward.
ARB added that it was “taking decisive steps to ensure that every future prize winner can participate with absolute confidence." The company pointed to plans for a paying structure "that stands separate from ARB to ensure that all future PCH prizes are honored, regardless of ARB’s financial status.”
PCH did not immediately respond to requests for comment.
It wasn't immediately clear how many past winners of PCH sweepstakes were no longer seeing “forever” checks. At the time of April's Chapter 11 filing, PCH listed 10 unidentified prize winners among its creditors with the largest unsecured claims — totaling millions of dollars, court documents show.
And for some, trouble bubbled up before the Chapter 11 filing. One man, who won a $5,000 a week “forever” award from PCH in 2012, told The New York Times and KGW that he didn't receive his annual check from the company back in January — which has since caused him to scramble to pay his bills without the money he's learned to rely on.
PCH’s roots date back to 1953 — when Harold and LuEsther Mertz, and their daughter Joyce Mertz-Gilmore, formed a business out of their Long Island, New York home to send direct-to-consumer mailings that solicited subscribers for a number of magazines through one single offering.
Actress Susan Lucci, right, presents Publisher's Clearing House Sweepstakes winner Dr. Peter Ferro a $10,000 check on June 22, 1999 at his New York dentist office.
The company later grew with chances for consumers to win money — first launching a direct mail sweepstakes in 1967 — and expanded its offerings to a wide variety of merchandise, from collectible figurines to houseware and “As Seen on TV” accessories, in the years that followed. Its in-person “Prize Patrol” team was formed in 1989.
PCH became known for surprising prize winners with oversized checks, which was often filmed and featured in TV commercials.
But its operations didn't come without financial strain, particularly in recent years. When filing for Chapter 11 in April, PCH said it was working to “finalize a shift away” from its legacy direct-mail business and instead transition to a “pure digital advertising” model — citing rising competition, expensive operating costs and changes in consumer behavior.
Over the years, PCH also faced some scrutiny from regulators who previously raised concerns about consumers mistakenly believing that making purchases from the company would improve their chances at winning its sweepstakes. As a result, PCH has racked up several costly legal settlements.
7 fastest-growing business trends in retail and e-commerce
7 fastest-growing business trends in retail and e-commerce
Updated
The retail and e-commerce sectors present significant entrepreneurial opportunities despite global economic shifts and geopolitical uncertainties. For those who can innovate and meet evolving market needs, the landscape remains full of potential.
While challenges like inflation and increasing competition persist, some of the fastest-growing retail and e-commerce businesses show resilience by offering consumers greater convenience, affordability and personalized experiences, NEXT says. Many opportunities exist when paired with emerging trends, especially for businesses that tap into growing sectors like wellness and sustainable products.
1. K-Beauty, J-Beauty and other Asian beauty products
In the past decade, Korean and Japanese beauty trends in the U.S. have gained tremendous ground. In 2024, Korean cosmetics alone ranked first in the U.S. import cosmetics market share (beating out France's Chanel and Lancome for the first time) capturing 22% of the market with a value of $1.4 billion.
Consumers are looking for the next new thing in skin care routines, gentle ingredients and innovative packaging, and Korea and Japan are poised to deliver.
Retail beauty entrepreneurs can tap into this market by curating a line of Asian beauty products in a subscription box, online marketplace or a pop-up shop.
Also a possibility for entrepreneurs: A beauty concierge service with personal shopping assistance and recommendations, or partnerships with brands or distributors to offer direct-to-consumer products.
If you're knowledgeable about what these cosmetics can do, you could also organize workshops and create classes to educate consumers about trends, techniques and hands-on product demos.
2. Secondhand and vintage goods resellers
The global secondhand apparel market is projected to reach $350 billion by 2028, driven by sustainability concerns, economic challenges and a love for unique items. And online platforms like ThredUp, Depop, and Poshmark are booming for secondhand apparel resale.
But our desire to keep gently used products out of the landfill does not stop with clothing. Niche vintage and secondhand resellers for vintage furniture (like Chairish), used sporting goods (like SidelineSwap), and musical instruments (Elderly.com) are also on the grow. This greater marketplace beyond clothing could be worth $64 billion by 2032.
3. Social commerce-based businesses
If you've ever been looking at a silly gadget on Instagram—and then clicked to buy it on the spot—then you're well aware of what it means to be swayed to purchase on social media.
Social commerce refers to a change in retail channels rather than a swing in a subset of goods and services. And this new way to buy—integrated online shopping within your favorite social media platform—is expected to exceed the $100 billion mark in 2025 (a 22% growth from last year).
This trend opens up opportunities for businesses to reach customers through engaging social content, shoppable posts and partnerships with influencers. Business owners can use social commerce to build a more direct relationship with their audience and drive highly interactive and visually engaging sales.
4. Live shopping and interactive commerce
Live shopping isn't new; consumers have been shopping via television since the 1980s. But it's gaining a second wind thanks to social commerce and modern livestreams on e-commerce platforms. While live shopping hasn't caught on in the U.S. at the same pace as Alibaba's Taobao in China, it's gaining momentum with TikTok Shop sales rising 26% in 2024 to almost $72 billion.
If you want to move your goods in a new (old) way, add live shopping events to your retail strategy. Make a big splash to launch new products, host exclusive meet-n-greet and Q&A events, and showcase products through interactive demonstrations. And remember that limited-time offers during livestreams can help encourage sales.
5. The expanding pet industry
Got a pampered pet at home? You're not alone. Due to the increasing number of pet owners, their humanization of their pets and their willingness to spend a premium, Americans spent over $147 billion on pets in 2023 and growing.
The shift in shopping habits for Fido, Fifi and beyond, particularly with Millennials and Gen Z, has led to increased spending on big ticket pet goods and services, as well as health and wellness products.
For pet-focused entrepreneurs, this is a golden (retriever?) opportunity. Capitalize on the growing demand for premium pet food and treats, particularly if it has the value-add of organic, grain-free or specialty diet. And there's still an appetite for unique pet apparel, toys and grooming items at a giftable price point.
6. More gig work for more gig workers
With inflation and job insecurity pushing 38% of workers to seek freelance employment, small businesses can benefit from this ample and educated workforce by outsourcing specialized tasks like marketing, customer service and web development to freelance workers.
Offer flexible roles within your business—such as remote customer support or project-based work—to appeal to gig workers who value autonomy. Be sure to comply with your local state and federal employment laws around payroll and business insurance. And consult with a legal professional on limitations, as some large retailers have faced employee rights claims related to gig work classifications.
7. Personalized nutrition and functional foods
Products like gut-healthy kombucha, probiotic snacks and nutrient-packed smoothie kits have grown in popularity for people who want good food that they feel supports their health. And small business owners are growing the functional food market city by city, and neighborhood by neighborhood.
A subset of this trend is personalized nutrition (also called precision nutrition), which tailors a diet to a customer's unique health goals. This could mean customized meal plans, tailored nutrition supplements, or products for specific conditions like diabetes or low energy.
Customized meals like build-your-own bowls or salads let diners tailor their breakfast, lunch or dinner to their specific dietary need, be it high-protein, low-glycemic, etc. And according to a panel hosted by the Specialty Food Association (SFA), other opportunities for food businesses include customizable snacks, AI-powered nutrition apps, and new foods and flavors with targeted health benefits.

This story was produced by NEXT and reviewed and distributed by Stacker.



