Winning a sweepstakes or other prize can seem like a dream come true. All too often, however, notification that you have won a prize—or that you are eligible to win exciting prizes through a sweepstakes or other contest—is a scam.
Sweepstakes, contests, drawings, and prize solicitations are often used to scam consumers. Thousands of companies use sweepstakes cards, letters, and calls—or the promise that you have won a prize—to entice consumers to send money, give up their personal information, or listen to a persuasive sales pitch. Often, consumers give the company their personal information, time, or money, only to get nothing back at all. Even if they do receive a “prize,” that prize ends up being virtually worthless. For example, a “gold” ring may turn out to be a fake worth less than $10.
Here are some tips if you’re contacted about a sweepstakes or unsolicited prize:
- Don’t pay to enter a sweepstakes or for the chance to win a prize. Legitimate sweepstakes are free and by chance. It is illegal to require you to buy something or pay to enter or increase your odds of winning a sweepstakes. Companies must give you the opportunity to enter a sweepstakes without cost—sometimes that information is hidden, but it should be there. Similarly, don’t pay to enter drawings or similar contests.
- Don’t pay to receive a prize. If you unexpectedly receive a notice that you have won a prize, or if someone contacts you to say you have won a prize, be wary. Do not pay “taxes,” shipping or mailing charges, or other money to receive an award or prize.
- Don’t call a 1-900 number to enter a sweepstakes or to collect a prize. 1-900 numbers or 900 numbers are “pay-per-call” numbers that charge you for calling and can end up being costly.
- Be wary if you’re asked to call a phone number or attend a webinar or other event for more information about a sweepstakes or prize. This is often a company’s way of getting you to listen to a persuasive sales pitch that tries to get you to buy—or to try out for a trial period—an overpriced product or service, or to make some other monetary contribution.
- Don’t provide your personal information, such as your phone number, address, or email address. When you sign up for a sweepstakes or other contest, or when you provide your mailing address to supposedly get a prize, you may start to receive more telemarketing calls, junk mail, and spam email because the company may sell your information to others.
- Don’t be fooled by impressive names, titles, or promises. Companies often make themselves seem trustworthy and make prizes sound so attractive that consumers are convinced to take a chance and give away their money or personal information.
- Raffles are when you pay money for a chance to win prizes. Raffles are only legal if they are conducted by a charitable organization registered with the California Attorney General’s Office to conduct raffles, and only if at least 90% of the raffle’s gross receipts are used for charitable purposes. To find out whether a raffle is registered, search the Attorney General’s Registry of Charities and Fundraisers.
You may report an illegal sweepstakes or raffle, or a sweepstakes scam, to the California Attorney General.
