Scam Promotions and Prize Draws Fact Sheet
Relevant or Related Legislation:
The Enterprise Act 2002 (which subsumed the Stop Now Orders (EC Directive) Regulations 2001).
The Control of Misleading Advertisements Regulations 1988, as amended by the Control of Misleading Advertisements (Amendment) Regulations 2001.
Privacy and Electronic Communications (EC Directive) Regulations 2003.
Codes of Practice enforced by the Advertising Standards Authority and Phonepayplus (formerly the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS)).
Key Facts:
General Warning Signs:
• The approach, whether in writing, by phone or email is unsolicited.
• There is a very short time in which to respond to claim a prize.
• An invitation to send a "processing" or "management" fee, or make a purchase to claim a prize.
• An invitation to purchase goods or sign up to a service to obtain a prize or reward.
• The need to use premium rate phone lines.
• The source of the promotion is based overseas.
• An invitation to send money out of the country, particularly the Netherlands or Canada.
• Prizes are expressed in foreign currency.
• An invitation to provide credit card or bank account details.
• Rewards are wholly dependent on persuading others to join a scheme.
Telecommunications (phone calls and faxes):
• Premium rate services generally begin with the numbers 090.
• Premium reverse bill text messages usually contain a 4 or 5 digit short code number to reply to.
• Always read all promotional material including any terms and conditions.
• If in doubt do not reply or call the service.
• Call barring arrangements for premium rate services are available from most telephone companies if you do feel a need to control household access to such services.
• You can register with the Fax Preference Service to stop receiving unwanted commercial faxes.
• You can register with the Telephone Preference Service if you want to stop receiving unsolicited SMS and telephone marketing messages.
• All premium rate services should advise you of the price before you access them.
Frequently Asked Questions (FAQs)
- Should I send money in response to this letter/ e-mail/text message/fax I have received?
- Who can I complain to about misleading or suspect mail/e-mail/text messages/faxes?
- Why doesn't the Government introduce legislation to outlaw these scams?
- If action is taken against a scam, will I get my money back?
- How can I stop receiving unsolicited mail?
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Q1. Should I send money in response to this letter/e-mail/text message/fax I have received?
The Department (BERR) cannot advise on individual cases. But there are a great many "scam" mailings which offer large sums of money in return for a fee or a purchase. We encourages consumer to ask themselves:
• What am I being asked to pay for?
• Can I really afford to lose this money?
• How can I win a lottery I didn't enter?
• Does the mailing look to good to be true? If it looks to good to be true, it probably is.
Q2. Who can I complain to about misleading or suspect mail/e-mail/text messages/faxes?
The Office of Fair Trading (OFT) has powers that allow them to take action against traders operating in the UK and other European Union (EU) Member States who breach legislation on misleading advertising. However, the biggest problem is from mailings that originate from countries outside the EU. The OFT has no power to stop infringements of consumer law outside the European Economic Area and they rely on informal co-operation with their international counterparts.
Suspect mailings can be forwarded to the OFT at:
International Liaison Section
Fleetbank House
2-6 Salisbury Square
London, EC4Y 8JX.
The Advertising Standards Authority (ASA) investigate misleading mailings, which may be in breach of the British Codes of Advertising and Sales Promotion. The ASA also liaise with the appropriate regulatory bodies for promotions which have originated outside of the UK, via the European Advertising Standards Alliance for Investigation. Complaints can be referred to:
The Advertising Standards Authority
2 Torrington Place
London, WC1E 7HW.
Phonepayplus (formerly The Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS)) is the industry-funded regulatory body for all premium rate charged telecommunications services, i.e. telephone and fax. It enforces a code of practice for the operators of such services. It can investigate complaints and has the power to fine companies and bar access to services. Complaints can be referred to:
Phonepayplus
4th Floor
Clove Building
4 Maguire Street
London, SE1 2NQ
Tel: 020 7940 7474
Web: http://www.phonepayplus.org.uk/
The Information Commissioner’s Office (ICO) enforce the Regulations relating to telephone, fax, e-mail and SMS marketing. They can be contacted at:
Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
SK9 5AFTelephone 01625 845 700
e-mail at mail@ico.gsi.gov.uk.
Internet service providers (ISPs) can offer advice to their customers on ways of avoiding unwanted e-mail and will investigate customer complaints against service operators who send "spam" e-mails in breach of acceptable internet use policies.
Q3. Why doesn't the Government introduce legislation to outlaw these scams?
The Stop Now Order Regulations enable the Office of Fair Trading to bring injunctions against traders breaching regulations on misleading advertising. Action can now also be taken across EU borders, so scams operating from Europe can be pursued.
But legislation is only part of the answer. It can never entirely keep up with scams. Enforcement action can only be taken once scams have come to the attention of the authorities, by which time consumers may have suffered detriment.
The best weapon against scams is greater awareness and scepticism on the part of the public.
Q4. If action is taken against a scam, will I get my money back?
Unfortunately, it is highly unlikely that individual consumers would get their money back. The OFT has no powers to seek civil redress for consumers either here, in Europe or further afield. This is why it is so important not to be taken in by these scams in the first place.
Q5. How can I stop receiving unsolicited mail?
Whilst direct marketing is a legitimate means for companies to promote products, services and special offers, it can represent a nuisance.
There are 2 Preference Services in operation within the communication sector which enable consumers to withdraw their names and addresses from marketing circulation lists – some of these are voluntary and some operate on a statutory basis so failure to respect registration will be against the law. Consumers should note however, that unscrupulous companies tend to trade names and addresses with other scam promoters and those mailing lists may never be updated.
Addressed Direct Marketing Mail
Mailing Preference Service
Freepost 29 LON20771
London, W1E 0ZT
Tel: 0845 703 4599
To register on line: www.mpsonline.org.uk
DMA Website: www.dma.org.uk
Unaddressed Mail and Leaflets delivered by Royal Mail
Consumers can also reduce the amount of unsolicited unaddressed mail and leaflets they receive (addressed to occupier and householder etc) by registering with:
Freepost RRBT-ZBXB-TTTS
Royal Mail Door to Door Opt Outs
Kingsmead House
Oxpens Road
OXFORD
OX1 1RX
or email: optout@royalmail.com
http://www.royalmail.com/portal/rm/content1?catId=400126&mediaId=500081
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