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Sweepstakes can be fun - but shouldn't
cost you money
Sweepstakes offers sweep savings
out the door
Sweepstakes 'scams' unveiled through
series
Daughters vent their frustrations
at sweepstakes
Another area person also believed
he was a winner
USPE responds to local customers'
complaints
Attorney General wants to better
the odds in sweepstakes
Sweepstakes victim goes public
Sweepstakes industry hits unlucky
streak
Psychology lures people into buying
Sweepstakes victim getting her
money back
Sweepstakes legislation may carry
local victim's name
Buying club complaints piling up
Here's the key: Think, call BBB
before you sign
NEWS-SUN, EVENING STAR
& HERALD-
REPUBLICAN
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Cartoon by Michael Fraley
EDITORIAL
Here's the key: Think call BBB before you sign
Originally printed in The News-Sun,
The Evening Star & Herald-Republican 10/21/01
At the urging of northeast Indiana residents who feel they have
been taken for a ride, our special assignment reporter Cindy
Bevington took an in-depth look at Midwest Direct, Inc., a company
which has been in business since April, 2000.
The company has sent out 30,000 to 40,000 mailings containing
a key that possibly could be the key to a free car. People are
told in advance that when they come in with the key they will
be required to listen to a sales pitch for a buying club.
Chances of winning the car are 1 in 10,000. Midwest has given
one car out of all the mailings. The majority of the people (9,954
in 10,000) "win" a "family vacation holiday"
with a quoted retail value of $175. However, to take the vacation,
the winner must travel at least 100 miles away and listen to
a time-share sales pitch. Also, fine print on the "vacation"
says children cost $5 each. This is not free; neither is the
gas it takes to get to the destinations.
The Fort Wayne Better Business Bureau has fielded more than 80
complaints about the company's sales tactics. Indiana Attorney
General Steve Carter has addressed or is addressing another 40.
According to BBB president Mike Coil, the company's contracts
are valid. But the contract contains language that could be interpreted
in many ways - and that's where people feel snagged.
One person told Bevington, "You can just about be guaranteed
you won't win the car, but you're sure going to get taken for
a ride."
To avoid being "taken for a ride," Coil advises people
to ask for a day or more to think about any sales pitch and call
the BBB (1-800-552-4631) before you sign.
If you feel you have been misled by any company, call the BBB
and/or Carter's office (1-800-382-5516) and/or visit www.IN.gov/attorneygeneral/complaint.
...And follow tried
and true guidelines
If a contest requires more than a postage stamp, a phone call
or some time, you probably shouldn't enter it. That's the advice
of Sheila Stephens, who has won more than $9,000 worth of prizes
this year.
But her "banner year" was 1995 when she won something
every month. Most of the prizes were big, like a $500 shopping
spree, a $1,000 stereo system and a three-day cruise from Miami
to Cozumel, Mexico.
Stephens has never repeated that "unbelievable" year,
but, since 1990, she has entered hundreds of contests and won
thousands of dollars in cash, household appliances and trips.
This year started off with two big prizes: a $5,000 shopping
spree at Mall of America near Minneapolis and a four-day trip
to Las Vegas.
Stephens of LaOtto gives these suggestions for increasing your
probability of winning:
1. Always follow the rules to the letter. If the contest says,
"You must be present to win," make sure you are present
at the right time and place. She won a big-screen TV because
when the first two names were drawn, the winners were not present.
2. Be persistent. "You can't win if you don't enter,"
she says. Stephens has entered some contests as many as 50 to
100 times.
Most of the contests that Stephens enters require people to go
to the store to sign up. "I go there once a day, or as much
as you are allowed," she says.
3. Don't gamble. Don't enter any contests that cost money.
She also urges people to be suspicious if they receive a call
saying they have won a contest that they didn't enter.
"Be choosy about your contests," she says. "Enter
lots of local contests and stick with it."
But remember - when you win, the IRS wins, too. You have to pay
taxes on all your winnings. If your winnings become substantial,
that means a sizeable chunk for Uncle Sam.
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STAR REPORTER'S
SWEEPSTAKES SERIES WINS NATIONAL AWARD
EXCLUSIVE TO THIS WEB SITE:
A letter to The Evening Star editor
from Indiana's Attorney General
Want to read another paper's stories
about sweepstake scams?
Why do the elderly seem more susceptible
to believing sweepstakes promises? Two experts give their opinions
Why do the elderly seem more susceptible
to believing sweepstakes promises? A gerontologist shares his
studies.
Iowa has seen it before
National issue, local example,
big news
Persons to contact if you believe you may be the victim
of a sweepstakes scam:
National Association of Attorneys
General
750 First Street, NE, Suite 1100
Washington, DC 20002
PH: (202) 326-6000
FAX: (202) 408-7014
Office of Attorney
General
Steve Carter
402 W. Washington St.
Fifth Floor
Indianapolis, IN 46204
PH: (317) 232-6201
FAX: (317) 232-7979
National Fraud Information Center 1-800-876-7060
National
Consumer's League
1-202-835-3323
Federal Trade Commission 1-877-382-4357
(toll free)
E-mail
Cindy Bevington
or Evening Star
editor Dave Kurtz.
WATCH FOR ADDITIONAL STORIES EXCLUSIVE TO THIS WEB SITE!
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