Sweepstakes scam cheated unsuspecting consumers, FTC says

Share this article:

A fraudulent sweepstakes operation has violated federal law by sending personalized mail to millions of consumers nationwide, per a complaint filed by the Federal Trade Commission last week.

According to the FTC's report, the company falsely told consumers that they had won a substantial cash prize, often said to be worth more than $3 million, even though no prizes were awarded. The complaint was filed in the U.S. District Court for the District of Nevada.

The FTC complaint also alleges that the mailers sometimes contained small print that vaguely referred to a "newsletter" produced by the defendants, but not expressly informing the recipients that they had not won a prize.

Instead of prizes, some consumers received information about how to enter sweepstakes. Also, some consumers received more mailers soliciting more money and suggested that they had won other prizes.

The defendants named in the complaint, all Nevada based, are National Prize Information Group Corp., doing business as Las Vegas Actionable Awards Program, Prize Search Express, Department of Unclaimed Awards, United States Sweepstakes Advisory, United States of America Patriotism Awards, National Bureau of Prize Information, Lapham Vargas and Cornell, Director's Office, and John Rincon, individually, and as an NPIGC officer.

The FTC charged them with violating Section 5 of the FTC Act, seeking a temporary restraining order, a preliminary injunction and a freeze of their assets.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.

Candidates Offer Change In The Form of Targeting

Candidates Offer Change In The Form of Targeting

A campaign for Ben Carson raised $2.8 million despite his lack of cooperation.

Target Names Retail Veteran Brian Cornell as CEO

Target Names Retail Veteran Brian Cornell as CEO

He leaves the top job at PepsiCo Foods to take the spot vacated by Greg Steinhafel in the aftermath of the data breach.