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Scams

Introduction

Unfortunately, these days we all get lots of 'junk mail'. Much of this is just a nuisance, but some of it, offering 'free' competitions or prize draws, can raise our hopes without good cause. It can also con us into parting with some of our money. Similar 'scams' also appear on the internet. Many of these competitions and prize draws can only be entered by using an expensive premium rate telephone line. The Gambling Commission for Great Britain takes the view that many of today's competitions and prize draws are unlawful lotteries run for commercial or private gain. The information and advice given here concentrates on competitions and prize draws involving postal invitations and premium rate telephone entries.

What the law says

The main law is the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985. Although this is a fairly straightforward piece of legislation, the legality of a draw involving telephone entry is a very complex question which has yet to be fully sorted out by the courts. And so, we will not go into that question here. However, if you do need information on lottery law, you can get it from the Social Policy Unit of the Department for Social Development. Their address and phone number are shown below.

The operators of these competitions and prize draws have usually worded the conditions very carefully so as not to fall foul of the law. However, if they make blatently misleading statements they may have committed offences under the Consumer Protection from Unfair Trading Regulations 2008.

Useful information

The Gambling Commission is concerned that many of today's competitions and prize draws are not regulated or supervised. In the Commission's view there is very little protection for the public who may be persuaded to take part at a cost greater than £1, which is the maximum price allowed for certain lotteries.

'Free' scratchcard lotteries are also increasing. These often seem to be good value. But be warned. Again, many of these involve prizes which can only be claimed by phoning a premium rate line costing more than the value of most of the prizes on offer.

If you receive an invitation to enter a prize draw or competition, make sure you read the small print. It should tell you how much your entry phone call is likely to cost. Then, having regard to the prizes on offer, you can make an informed choice as to whether you should take part or not. If your invitation doesn't give you this information, you would do well to seriously consider ignoring it. Please also be on your guard if the organiser's address is outside the United Kingdom. This could complicate things if anything goes wrong and you want to get a refund of the cost of your phone call or any other entry charge.

What to do if you have a complaint

If you do take part in one of these prize draws or competitions and then feel you've been conned, write immediately to the organiser. If you don't get any satisfaction, you may wish to seek the advice of the police as to whether the competition or prize draw was really an unlawful lottery. You can also report your complaint to Consumerline on 0300 123 6262.

You may wish also to get in touch with PhonepayPlus, the 'watchdog' organisation for premium rate telephone services. It has produced a code of practice for the running of competitions and prize draws and can fine companies that misuse Premium Rate numbers , bar access to their funds and authorise refunds.

From category: Buying Goods & Services