Canada Charges Prize Mailers With Deception

Share this content:
The Canadian Competition Bureau filed charges against two Toronto-based corporations accused of making deceptive statements in a prize contest mail campaign, the bureau said yesterday.

HMS Direct Limited and Hallstone Products Ltd. sent unsolicited mailings to consumers that led them to believe they could obtain a prize if they returned a $14.95 to $29.95 "processing fee," the bureau said. Consumers in 91 countries, excluding Canada, complained about the mailings, which were marketed under the name "Canadian Equity Funding," the bureau said.

The mailings promised that consumers would receive up to $5,000 or 3,000 pounds sterling, the bureau said. But consumers received a predetermined prize item, usually an inexpensive piece of jewelry, according to the charges.

In summer 2002, the bureau filed charges against the same two companies involving mailings that promoted the purchase of lottery tickets, the bureau said.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above