Tips for Tough Times
Office of the Attorney General, Consumer Protection Division
Issue #66
Are You Really a Winner? Probably Not
* A Baltimore woman received a letter claiming she had won a prize, and instructing her to call a 900-number to find out what the prize was. She called. The prize was one dollar. The call cost $32.
* An Ellicott City woman said her son, a college student, was pursued for weeks by a company insisting he was a likely candidate to win a variety of things including a car or a large sum of money. Eventually, her son called a 900-number to see what he had won. He was directed to call another 900- number to complete his "winning registration." In the end, he got nothing but an $82 phone bill.
How often have you seen some variation of this pitch: "You have won a free vacation" -- only to find out later the "free vacation" will cost you a bundle or require you to sit through a high-pressure timeshare or vacation club membership sales pitch? Or maybe you've been notified that you are a sweepstakes finalist and could win fabulous prizes or piles of money, only to be asked to call a 900-number or send money before you can be told what you have won.
People who respond to these gimmicks may end up spending a lot of money only to find out there is no prize or it is of little value. And once you pay money in an attempt to get one prize, your name becomes part of a mailing list that is sold to other prize operations that will also try to get some of your money for an illusory chance to win something of value. Keep in mind that the purpose of the "prize" is to lure you into spending money. These operations are not interested in giving you anything without getting something in return.
The Consumer Protection Division has received countless complaints from consumers who, after receiving offers of prizes as bait, felt compelled to listen to high-pressure sales pitches for timeshares or vacation clubs. Under Maryland law, if you receive an offer of a prize, you do not have to submit to a sales pitch or pay any money in order to receive your prize. You may simply show up, pick up your prize and leave. However, because the value of these prizes is almost always overstated, you are likely to be disappointed since most prizes are worth very little.  For instance, one couple was told they had won a 5-foot grandfather clock. What they received was a carton containing several pieces of pressed wood, a clock face and a set of clockworks small enough to fit in a watch. Or the boat you have won might turn out to be an inflatable raft.
Though it is sometimes legal for merchants to give a "free" gift with a purchase, the value of the prize cannot exceed 20 percent of the price of the purchased item and under no circumstances can it be worth more than $400. Also, it is never a good idea to let the prize determine your purchasing decision. Many consumers are lured in by promises of a prize and then persuaded to make an impulsive purchase they regret. The only way to get a good deal is to do some smart comparative shopping for the product you need, not the product that catches your eye because it comes with a "free gift."
If you receive a notice that you have won, or are eligible to win a prize, the law requires that you be told what the prize is worth. Your prize notification is also required to contain information that reveals the retail value of each prize, the odds against winning each prize, what conditions must be met to receive the prize, the exact number of prizes in each category and when and whether all the prizes will be awarded. If prizes are worth more than $100, promoters must also disclose when and where a list of winners can be obtained.
If your prize notice does not contain this information, it is a scam. If it does, read it. You will probably realize you didn't win anything, or what you "won" is of little value and comes with too many strings attached.