Industry Tips
Sweepstakes & FTC Telemarketing Rule
In general, the Better Business Bureau recommends the following when dealing with a sweepstakes promotion received by mail or over the telephone:
*Regardless of what a caller or mail solicitation may say about a prize, NEVER give your credit card number or its expiration date over the telephone. If you have been told you have won something, it should be free of charge, with no obligation to buy something.
*Some companies will tell you they need an upfront fee to cover shipping and handling charges, insurance, promotional fees or taxes. Or, the company may advise you that in order to avoid paying the up front fee, you must purchase one of the company's products. Remember the bottom line: If you have won a prize, you shouldn't have to pay a dime to collect it. If you have been told you have been awarded a premium or bonus, you may be required to make a purchase. Also, the premium or bonus you receive is picked by the company and not you.
*If you have been told you are going to win one of a selection of prizes, the list may include one item which seems expensive, but is actually of little value. This prize is known as the throwaway prize -- the prize 99% of participants in sweepstakes promotions receive. Throwaway prizes may include vacation certificates and pendants containing diamonds or other stones, which often have the retail value of $10-$20.
*Never give the caller information about your checking or savings accounts. If you have given your credit card number to a company, and feel you have been misled, you may attempt to cancel the charge by contacting the bank issuing your credit card within 60 days.
*The BBB recommends you do not send cash, checks or money orders to a company if you feel you have been pressured. Some telemarketing firms will ask consumers to send money by Federal Express, or some other overnight delivery service. You may ask yourself why a company needs a response so fast.
*Never agree to purchase a product unless you have a need for the product itself; do not purchase a product in order to become eligible to enter a contest or win an award or prize.
The Federal Trade Commission (FTC) has issued the Telemarketing Sales Rule to help protect you from deceptive and abusive telemarketing practices. Here are some important provisions of the rule:
1. It is illegal for a telemarketer to call if you have asked not to be called.
2. Calling times are restricted to the hours of 8:00 a.m. and 9:00 p.m.
3. Telemarketers must tell you if it's a sales call, the name of the seller, and what they are selling before they make their pitch. If it's a prize promotion, they must tell you that no purchase or payment is necessary to enter or win.
4. It's illegal for telemarketers to misrepresent any information; any facts about their goods or services; earning potential, profitability, risk, or liquidity of an investment; or the nature of a prize in a prize-promotion scheme.
5. Before you pay, telemarketers must tell the total cost of the goods and any restrictions on getting or using them; or that a sale is final or non-refundable. In a prize promotion, they must tell you of the odds of winning, that no purchase is necessary to win, and any restrictions or conditions in receiving the prize.
6. It's illegal for a telemarketer to withdraw money from your checking account without your express, verifiable authorization.
7. Telemarketers cannot lie to get you to pay, no matter what method of payment you use.
8. You do not have to pay for credit repair, recovery room, or advance fee loan/credit services until these services have been delivered.
9. It's illegal to help deceptive telemarketers if you know -- or consciously avoid knowing -- that they are breaking the law.
10. Your state law enforcement officers now have the power to prosecute fraudulent telemarketers who operate across state lines.
If you have questions, or wish to obtain a complete copy of this rule, call the Federal Trade Commission at (202) 326-2222.
For more information,
contact:
Better Business Bureau
(800)
828-5000
www.upstateny.bbb.org