Press Release July 29, 1998	Contact: 202/462-6262 Sally Greenberg, greesa@consumer.org Kathleen McShea, mcshka@consumer.org Consumers Union Washington, DC Office

CU Warns Consumers: Recognize Fraudulent Sweepstakes

WASHINGTON – With America’s fascination with games of chance was in full display Wednesday, Consumers Union issued a list of tips for consumers to avoid getting scammed by fraudulent sweepstakes or contests.

"The Powerball frenzy has magnified America’s fascination with games of chance," said Sally Greenberg, senior product safety counsel at the DC office of Consumers Union, publisher of Consumer Reports. "I want to remind people that games of chance are not always fair and square. Consumers need to be on the alert for scam artists who are laying in wait to rip people off."

Greenberg enumerated five "CONSUMER TIPS" for consumers to avoid getting ripped off by fraudulent sweepstakes and contests:

• Never respond to sweepstakes offers that require you to buy something first. A genuine "free prize" has no strings attached and should not require a purchase.
  
• With legitimate sweepstakes, you do not have to pay anything to collect your prize. If you have won merchandise, like a necklace or car, the sweepstakes promoter will pay the delivery charges. If you win cash, the sweepstakes promoter either will withhold taxes from the cash award or report the winnings to the Internal Revenue Service.
  
• Legitimate sweepstakes do not need your credit card number to award a prize. Never give your credit card number over the phone to someone you don’t know. The number may be used to make unauthorized charges to your account.
  
• Be wary of offers that entice you to call 900 numbers in order to claim a free gift. The charge for the 900 number will likely cost you more than the prize is worth.
  
• Read the fine print. Remember, few, if any, consumers who respond to prize offers actually win anything worth as much money as they spend. The majority lose money.