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October
2003 Consumer
Advisories
Caution: Watch What You Sign
Entering contests and giveaways may expose you to unwanted calls or scams -- or even cancel
your "Do Not Call" registration.
Sweepstakes and prize entries have long been used to build calling lists for
solicitors -- and sometimes to cheat consumers. Example: You sign up hoping
to win a trip -- but the fine print on the back side of the entry card authorizes
them to switch your long distance service to a different, expensive carrier.
Moral of the story: watch what you sign.
Here are some of the bad things that can happen with free-prize sign-ups
-- and some tips to help you avoid being cheated:
- The latest variation of this ploy is aimed at canceling the effect
of registering for the national "Do Not Call" list. (The Do Not Call
list prohibits most commercial telemarketing calls if you sign up.) In this
case, a sweepstakes has touted a $25,000 prize, but you are much more likely
to win the "booby prize" - more telemarketing calls. Why? The entry form contains
the line: "By completing this form, you agree that sponsors and cosponsors
of this sweepstakes may telephone you, even if your number is found on a Do
Not Call registry."
The national "Do Not Call" Registry permits telemarketers to contact you if
they already have a business relationship with you, and some may claim a sweepstakes
or prize entry meets that test. It's a special new reason to watch what you
sign.
- You may be inviting unwanted solicitations. Even without
deceptive fine print, prize entries are used to build consumer lists. You
are unlikely to win a prize but very likely to receive more solicitations
by mail, phone, or even at your door. Your name may be bought and sold by
list brokers to honest businesses or to con-artists.
- Your telephone long distance service could be "slammed" (switched)
to a different long distance company (which could be far more expensive
than your chosen service.) Study both sides of any entry form to be sure there
is no "fine print" that changes your phone service, signs you up for a "buyer's
club," etc.
- You may be asked for private financial information. Don't
give credit card or checking account information or your Soc. Sec. number.
You may also want to keep private your date of birth, marital status, household
income, and occupation.
Consider "taking a pass" on sweepstakes entries, and always read the fine print.
If you have a complaint or question, contact the Attorney General's Consumer
Protection Division, Hoover Building, Des Moines, Iowa 50319. Phone 515-281-5926.
Log on to the Attorney General's web site at www.IowaAttorneyGeneral.org
("protecting consumers.")
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