Attorney General Richard Blumenthal sent cease and desist letters to more than 100 direct mail promoters, directing them to halt sweepstake solicitation of Connecticut consumers until they comply with state disclosure laws designed to protect consumers from being scammed by sweepstake offers.
"The big lie is in the mail -- literally tons of sweepstakes mailings each year much of it so deceptive that Connecticut consumers lose tens of thousands of dollars thinking the money they spend will yield a big prize," Blumenthal said.
"Very simply, 'pay to play' is illegal. Consumers may not be required to make a purchase in order to participate in any sweepstakes.
Sweepstakes promoters are required to provide conspicuous disclosures to inform sweepstake consumers of the often astronomical against winning and of other significant restrictions on use of prizes," Blumenthal said. "The letter directs these companies to stop their sweepstake mailings in Connecticut unless they provide the required disclosures and comply with our sweepstake laws. If they and others fail to heed this warning, will take action in court. We've already sued some."
Many of the promotions lead sweepstake consumers to believe they have already won a big prize, and will receive the prize if they send in a fee. Other sweepstake promotions lead consumers to believe if they purchase magazines or other merchandise they will increase their chances of winning the sweepstake.
"We're telling the solicitors and sweepstakes promoters to cease and desist. We're telling sweepstake scam victims that we need their help. Let others learn a lesson from your experience and help us get money back for you, and apprehend the con artists," Blumenthal said.
Blumenthal's office recently recovered $10,000 for the family of a deceased, elderly West Hartford man who lost the money in small increments over time to sweepstakes promoters. The man's home was full of the cheap plastic sweepstake "prizes" he "won" and useless gadgets that he purchased because he was convinced his purchases would increase the chances of winning a sweepstake.
"This story is all too common: targeting seniors, slick promotions seem to promise that this time the ship magically is on the horizon, when, in fact, victims are sinking fast into the grasp of unscrupulous direct
mail promoters," Blumenthal said. "Consumers should either trash these promotions, or send them to me so we can act against them."
Blumenthal's action in Connecticut is one of a series of efforts announced today nationwide by other Attorneys General, the Federal Trade Commission, the American Association of Retired Persons (AARP) and the United States Postal Inspectors to reduce direct mail sweepstake scams.
It represents the second phase of "Operation Senior Sting," which Blumenthal spearheaded in January 1997. Under "Operation Senior Sting," members of state and local chapters of AARP in Connecticut saved all of the sweepstakes mailings they received. Volunteers from AARP, the Retired and Senior Volunteer Program (RSVP) of New Britain, and the Senior Volunteer Assistance Program in the Office of the Attorney General collected and examined the mailings for compliance of the law over the past year. Their findings were reviewed by the Attorney General's staff and reported to Blumenthal.
"Our volunteers did a remarkable job of scrutinizing all of the mailings we received for compliance. The work was slow and painstaking because of the volume of sweepstake mailings we received through this operation," Blumenthal said.
"These senior citizens have done a tremendous service for the consumers of the State of Connecticut."
Under Connecticut law, sweepstakes promotions must disclose the following information in immediate proximity to and in at least the same face type as the description of each prize in the sweepstake advertisements:
-the verifiable retail value of the prize; face=Verdana color=#000000 size=2>
-if the element of chance is involved, the odds of winning the prize in Arabic numerals as a fraction or ratio, or -- if the odds
depend on the number of entries received -- a statement that the odds depend on the number of entries received;
-whether the receipt of the prize is restricted or qualified in any way.
Sweepstakes solicitations also must clearly and conspicuously disclose:
-the name and address of the promoter and the sponsor of the sweepstakes;
-any conditions or restrictions on the eligibility to receive the prize, including, but not limited to, age, residence, employment or marital status.
The sweepstakes law also prohibits games of skill offering prizes valued in excess of $200 which require an entry or judging fee.
Connecticut law further prohibits promotions in which all recipients are notified that they are "winners" and participation in foreign lotteries.
Blumenthal sent letters to the 110 direct mail promoters today, detailing the statute's requirements and directing them to halt operations in Connecticut until they comply with the law. The promoters included 29 charitable solicitations, 19 solicitations for sale of magazines, 20 games of skill contests, 7 "everybody wins" solicitations, 5 foreign lottery solicitations and
30 miscellaneous sweepstakes promotions. Blumenthal urged consumers who believe they were victimized by sweepstake scams to write to the Office of the Attorney General, 110 Sherman Street, Hartford, Connecticut, 06105, or to call the Senior Advocate hotline at 10800-660-7787.