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USPE responds to local
customers' complaints
Third in a series
Originally printed in The Evening
Star 1/6/99
By CINDY BEVINGTON
ANGOLA - "Free stuff... Sort of."
The message greeting visitors to United States Purchasing
Exchange's website is an ironic reflection of the experience
two northeast Indiana people have had with USPE.
The local man and woman claim to have spent at least $5,000
and $50,000, respectively, on purchases with USPE, in hopes of
better qualifying themselves for the company's sweepstakes offers.
The woman says she has gone bankrupt hoping to win USPE's
$3 million sweepstakes. With the help of a Council on Aging volunteer,
the man currently is getting his money refunded as he sends back
the merchandise he bought.
This week, The Evening Star spoke with Bruce Stone, USPE's
vice president of consumer relations. No one is encouraged to
"go broke" by buying the company's merchandise, Stone
said.
Not buying from the company does not affect anyone's ability
to win the sweepstakes, he said.
The company has a refund policy that will allow the woman,
like the man, to get her money back, he added. Then, by fax,
Stone sent several pages of the company's policies regarding
purchases and sweepstakes entries, including sample letters sent
to consumers.
However, although he addressed a question about the company's
"incentive" programs - where participants are required
to buy something in order to qualify for prizes such as cars
- he did not directly answer certain questions about these particular
programs.
The literature Stone sent contains several warnings to customers
stressing that they do not have to buy anything to be eligible
to win. An independent judging organization chooses the winners
and does not notify USPE of the winners' names until the contest
is over.
The literature also warns customers "never (to) assume
you are a winner or loser before a sweepstakes ends."
One copy of a letter that Stone said was sent to all of USPE's
customers gets even more specific, telling them that "some
(people) unfortunately do not seem to take the time to read our
brochures thoroughly and therefore do not understand our sweepstakes
even though all the information is there."
Hinting that USPE is very much aware that some people - particularly
senior citizens - go over their budgets making purchases from
USPE, the letter goes on to say that "some buy from our
catalog even if they truly can't afford it, causing a severe
financial hardship for themselves or their families."
It also says, "Some understand that a purchase is never
required to enter our sweepstakes, but somehow think they have
a better chance of winning if they make a purchase. They end
up buying extremely large quantities of merchandise that they
have absolutely no use for."
Finally, it adds, "Some of our customers are senior citizens
and a small number of these as well as other customers with health-related
problems may be experiencing difficulties in dealing with certain
things in their life, including our mailings which contain different
brochures."
While Stone did not reply to the newspaper's request to explain
in detail the difference between the company's "sweepstakes"
and "incentive programs," he did say that the company
"offers premium incentives which are bonus programs when
ordering. These programs are not sweepstakes, as stated in the
instructions in our mailings and on our website," Stone
said.
He went on to say that participants in the incentives can
"always find out before ordering" what item they can
receive by reading the instructions in the program.
He did not explain the word "can."
Again, the literature Stone sent stresses that no purchase
is necessary to win USPE's sweepstakes. Why, then, would the
two northeast Indiana people be confused?
Perhaps USPE's website gives a clue.
After the "free stuff... sort of" greeting, visitors
to the site are encouraged to try to win an "extra bonus
award from USPE." A picture of a car flashes in the foreground.
The site also says, "Delivery of all rewards is GUARANTEED
to participants."
Site visitors then click on several spots, including a "big"
dog award, until they end up on a site that tells visitors they
"may" receive "one of (USPE's) fabulous 'Big Dog'
rewards FREE with any order, including a brand new Pontiac Bonneville."
The key words here, "with any order," are followed
by this: "Our Pontiac Bonneville will be available between
now and March 31, 1999. Only those ordering responses to the
USPE website's Scratch the Big Dog Reward premium program's specially
coded and registered for these items by an independent auditing
firm will be acceptable for redemption."
Further, the site says, "You could win..." then
shows pictures of a Pontiac Bonneville, a VCR, a 27-inch TV,
a computer and a stereo. "Go ahead (and see) which of the
rewards have been designated for you ..." The site then
shows another picture of the car.
The site goes on with this disclaimer: "This is not a
gift. This is a premium incentive program good only when purchasing
from our catalog and is not a contest or prize notification."
The website ends there.
In his letter, Stone did say that the company has awarded
"many millions of dollars in sweepstakes prizes, including
two prizes in excess of $2 million and three in excess of $3
million each."
Finally, The Evening Star asked for the company's latest $3
million winner's name. Explaining that the woman the newspaper
interviewed said she was continuing to buy from USPE in hopes
of getting back $50,000 she'd spent over seven years, and telling
USPE that she thought she "definitely" was their "guaranteed"
winner who was supposed to be notified by this Monday of her
big win, the company replied:
"That sweepstakes is not over until Dec. 31, 1999."
Next: The Indiana attorney general sums up his reasons
for addressing sweepstakes problems.
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