FTC Targets Sweepstakes Scam . . . That Targets the FTC?

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April 30, 2015

sweepstakesLast week, the Federal Trade Commission (the “FTC” or “Commission”) denounced an alleged sweepstakes scam that struck a little too close to home. According to the Commission, the audacious scammer is mailing information to consumers about an FTC investigation that never took place and offering to help collect millions in sweepstakes prize money that never existed.

Should legitimate marketers be concerned about this sweepstakes charlatan stirring up an FTC hornet’s nest?

Brave Sweepstakes Scammer

Last Monday, the FTC published a blog post describing the subject fake sweepstakes promotion. The Commission claims that consumers are receiving letters in the mail stating that they have won – and subsequently forfeited – $2.5 million in an alleged sweepstakes promotion. The mailing, which purports to be from an attorney in California, includes a separate forged letter from FTC Commissioner Joshua Wright that describes a bogus FTC investigation of sweepstakes sponsors and enlists the supposed lawyer’s help.

The package also allegedly contains a legal retainer agreement and asks consumers to pay thousands of dollars for assistance with the sweepstakes claim. The Commission has warned that the sweepstakes prize, FTC investigation and Commissioner Wright’s endorsement are all entirely fabricated.

Don’t Let Your Sweepstakes Promotion Get Swept Up in Legal Trouble

This latest sweepstakes scam is not only an insult to the Commission, consumers and experienced marketing and FTC compliance attorneys, but to straight-laced sweepstakes and contest sponsors as well. The FTC already takes a strong stance against legitimate marketers that do not comply with sweepstakes regulations, and it is imperative that they remain abreast of ever-evolving legal developments in the promotional contest and marketing space or risk bearing substantial liability. In light of the shots fired at the Commission by this scammer, sponsors should expect the FTC to remain strict and thorough in their investigation of sweepstakes promotions and contests.

If you need assistance with setting up a sweepstakes, contest or other promotion, or if you have been served with legal process relating to your marketing practices, please e-mail us at info@kleinmoynihan.com or call us at (212) 246-0900.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.

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Related Blog Posts:

Understanding Sweepstakes Law

Consequences for Violating Sweepstakes Registration and Bonding Requirements

$9.5 Million Penalty, Lifetime Ban for Deceptive Sweepstakes Promotion

David O. Klein

David O. Klein

David Klein is one of the most recognized attorneys in the telemarketing, technology, Internet marketing, sweepstakes and telecommunications fields. Skilled at counseling clients on a broad range of technology-related matters, David Klein has substantial experience in negotiating and drafting complex licensing, marketing and Internet agreements.

(212) 246-0900

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