Deceptive trade practice?

[robertm]

What is the name of your state? Colorado

I received a sweepstakes in the mail that said I definitely won a prize. When I tried to claim my prize the company informed me that I must pay $14.95 to get my prize. Colorado has very strict laws regarding contests and sweepstakes and I’m wondering if they violated the law (deceptive trade practice) with their $14.95 charge.

1. Colorado Revised Statutes (CRS) 6-1-803(1) states “No sponsor shall require a person to pay the sponsor money or any other consideration as a condition of awarding the person a prize, or as a condition of allowing the person to receive, use, compete for, or obtain a prize or information about a prize.” In their rules (font size 6) they said I must pay $14.95 shipping and handling to receive my prize.
2. CRS 6-1-105 (1) states “A person engages in a deceptive trade practice when, in the course of business, vocation, or occupation, such person: “
(rr) Violates the provisions of part 8 of this article; (I assume part 8 is CRS 6-1-8xx)

Because the company wanted $14.95 for shipping and handling it seems like they engaged in a deceptive trade practice. Based on this description does it seem like they violated the CRS laws regarding sweepstakes?

Thanks,
RobertWhat is the name of your state?

 

[gawm]

File a complaint with the Attorney General.

 

[robertm]

One other note of importance. They did specify the $14.95 charge for shipping and handling. But the law doesn't seem to say they can if they mention it. The law does however specify the font must be 10 point or greater. When I compare a 10 point font to their font it is 50% smaller. So I'd say their font is 6 point or so. CRS 6-1-802(2) specifies the font must be at least 10 point.

Thanks again.
Robert

 

[robertm]

File a complaint with the Attorney General.

Should I file with the city, county, or state? I'd guess state because they violated the Colorado Revised Statutes. I considered that, but wasn't sure which one.

Thanks,
Robert

 

[gawm]

State. It probably won't come to anything except make you feel a little better. This is a marketing ploy. They really are selling things, they make their money on shipping & handling. They figure more fish will bite if they market it as a free prize then if they just tried to sell it at $14.99. The best thing to do with those letters is to throw them out.

 

[BelizeBreeze]

This practice, under Colorado law, is legal. you have no case.

 

[robertm]

When I read CRS 6-1-803 I didn't see any exception that allowed them to charge for a prize. It seems, based on the text of the law (cut and pasted below) that they couldn't. It doesn't seem to allow for an exception. Thanks again for your help.



6-1-803. Prohibited practices and required disclosures.
Statute text

(1) No sponsor shall require a person to pay the sponsor money or any other consideration as a condition of awarding the person a prize, or as a condition of allowing the person to receive, use, compete for, or obtain a prize or information about a prize.

A link to the statute: http://198.187.128.12/colorado/lpext.dll?f=templates&fn=fs-main.htm&2.0

 

[shortbus]

That's why all these offers include the catch-all proviso "Void where prohibited" at the end of the offer. If it's prohibited in Colorado, then the offer is void and they haven't broken the law. If it's not prohibited, then they haven't broken the law. Either way, same result.

 

[robertm]

It was a local business

This offer was sent from a local car dealer. It looks like they bought the contest from a company that mass markets these types of things. This particular offer was sent to local residents of Colorado.

It doesn't seem like could charge a fee (legally that is) with the first provision of CRS 6-1-803 (quoted above).

I'll check to see if it says void where prohibited. It still seems like they violated the Colorado sweepstakes law.

Thanks again for help.

 

[robertm]

Attorney General and no void where prohibited

I sent my letter to the Attorney General of Colorado. They responded back pretty quickly. I also looked again at the contest and there was no wording about void where prohibited.

Thanks.