 |
|||||||||||||||
 |
|||||||||||||||
 |
|||||||||||||||
 |
|||||||||||||||
|
|||||||||||||||
 |
|||||||||||||||
 |
|||||||||||||||
 |
 |
 |
 |
|
| Attorneys General Settle with Time, Inc. On August 17, 2000, the Attorneys General of forty-eight states and the District of Columbia entered into a settlement agreement with Time, Inc., the well-known publisher of such magazines as Time, People and Sports Illustrated, regarding Time's sweepstakes marketing practices. Time uses direct mail solicitations and sweepstakes to sell its magazines, books, video and audio tapes and other products. The states alleged that some of Time's mailings and sweepstakes promotions were deceptive, in that they misled consumers as to the likelihood of a consumer winning a sweepstakes, or as to the effect of a purchase on a consumer's likelihood of winning. Time denied any wrongdoing, but agreed that it will modify its sweepstakes marketing practices. Pursuant to the settlement, in future sweepstakes mailings and in its sweepstakes advertisements in print and broadcast media, Time will not: • Misrepresent that a consumer is or may be a winner, or has special status or an increased chance of winning a prize. This includes misrepresentations by implication, such as by requesting information that would only be of use if the person won. • Represent that something is a "prize" when in fact anyone who sees the ad or receives the mailing will receive it. • Misrepresent the odds of winning, or the deadline for entry. • Use a simulated check, scratch-off game card or similar device to misrepresent the likelihood of a person's winning a prize. • Misrepresent that its employees have any personal relationship to a consumer, such as a feeling that that person deserves to win, or present fictitious conversations or dramatizations purporting to relate to a consumer. • Misrepresent the manner in which mail is being delivered (such as marking it "urgent"), or the source of the mailing. • Give an advantage to a sweepstakes entrant for making or having made a purchase, nor represent that making or having made a purchase will provide an advantage. In addition, Time agreed to the following: • All communications offering sweepstakes entry opportunities will provide a free method of entry, and will clearly and conspicuously state, "Purchasing does not improve your chances of winning." Methods of entry will be made equally simple with or without purchase. • All mailings will include a free-standing insert containing "Sweepstakes Facts." The "Sweepstakes Facts" will include (1) certain disclosures, including "buying won't help you win," "entry is free," "enter as often as you like" and "you have not yet won;" (2) the deadline for entry; and (3) a detailed odds statement. The "Sweepstakes Facts" will also be included in all Official Rules, and with all sweepstakes promoted on any Time web site. • Time will maintain, update and comply with a "Sweepstakes Do Not Promote" list for consumers who have either (1) subscribed to a certain number of years of a Time publication as a result of solicitations including sweepstakes entries, or (2) paid Time entities more than a certain dollar amount for Time products (which dollar amount starts at $500, and will be adjusted yearly in accordance with the CPI). Time will also establish a toll-free number or address for Do Not Contact requests, and comply with these requests within forty-five days. • Time has agreed to certain requirements with regard to its refund policy, as well as disclosures to be made in connection with that policy and its magazine subscriptions. It will establish procedures to promptly resolve customer complaints, as well as a state liaison to resolve customer service issues referred by state law enforcement agencies. • Time will only conduct "customer only" sweepstakes (restricted to those who purchase or have purchased something) under certain limited conditions. Time has also agreed to restrictions on its ability to offer premiums and instant win contests. • Finally, the settlement provides for Time to make cash payments to the states, including $4,924,636 for the establishment of a fund for payments to consumers, $30,000 for the states' costs in administering these payments, and $3,240,000 for costs and attorneys' fees incurred in pursuing the settlement. This settlement demonstrates the Attorneys General's continued commitment to addressing what they perceive to be problems of sweepstakes deception and fraud, and to requiring disclosures emphasizing that making a purchase will not enhance the chance of winning. © 2000 Davis & Gilbert LLP |
| Davis & Gilbert LLP • 1740 Broadway • New York, NY 10019 tel: 212.468.4800 • fax: 212.468.4888 |
|
| Privacy Policy • Terms & Conditions |