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SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

July 2, 2023

Sweepstakes Scams

Attribution: US Federal Trade Commission

It’s illegal for a company to tell someone to pay to enter a sweepstakes contest, or that buying something increases their odds of winning. But a well-known company has been running sweepstakes for decades to deceive people.

The FTC alleged that Publishers Clearing House used language and designs on its website and in its email marketing that tricked consumers. That included many older adults into believing they had to buy things on the PCH website to enter a sweepstakes. Or, that doing so would improve their chances of winning a prize.

It was alleged that PCH hid shipping and handling fees that added an average of 40% to customers’ orders;

PCH’s claims that orders were risk free were false; Customers had to pay the shipping costs to return merchandise.

As part of a settlement, PCH agreed to pay a penalty of several millions of dollars.

If you’re considering participating in a sweepstakes contest, here’s what to know:

*Real sweepstakes are free. It’s illegal to ask you to pay or buy something to enter.

*If you sign up for a contest, the promoters might sell your information to advertisers. If they do, you’re likely to see targeted ads online and get more junk mail, telemarketing calls, and spam email.

*Scammers try to trick you into believing you won a prize.

 FTC advises to never share your financial information or pay fees, taxes, or customs duties to get a prize. Scammers are after your money or personal information such as social security number or bank account number.

If you are aware of a sweepstakes prize scam, report it to the FTC at ReportFraud.ftc.gov.

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