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It happens every day. Thousands of people are notified by mail that they have won a free prize. Usually, it's a postcard notice that says your prize will be one of four or five "valuable" items--a new car, a vacation, a color television, or a $1,000 savings bond. Major companies sometimes give away expensive items in special promotions, but they usually don't notify winners with a postcard. Typically, these notices are mailed by con artists whose sole purpose is to rip you off. If you contact the company by phone, as the postcard will tell you to do, your "free" prize could end up costing you hundreds of dollars. The following examples illustrate the point. A man in San Mateo, California, paid $398 for "shipping charges" to receive a "free" 1988 Pontiac automobile. Needless to say, he got nothing. A Bergen County, New Jersey, resident paid a $69 "shipping and handling charge" to get his "free" $1,000 savings bond (with a maturity of some 30 years). He could have bought the same bond from the U.S. Government for only $50. Often you never get a prize. If you do get one, it typically is an inferior, overpriced, or grossly misrepresented piece of merchandise. For example, an "all terrain vehicle" turned out to be a lawn chair with wheels, a "sport fishing boat" was an inflatable raft, and a "genuine fur coat" was a dyed rabbit pelt worth about $30. Beware if the notice lists nice-sounding prizes like "designer" or "diamond" watches. They are likely to be cheap or practically worthless junk. Further, the scam artist makes you pay for your "free" item, either by requiring you to order merchandise or by charging a shipping, handling charges, or processing fee. You can almost be certain that the fees required to get the prize will exceed the true monetary value of the prize itself. And the merchandise you are required to buy will be grossly overpriced, as has been the case with the water filters and purifiers and the vitamins that are often marketed to the lucky "winners." Every day, consumers throughout the U.S. lose many thousands of dollars to these unscrupulous free prize promoters. Their operations, known as boiler rooms, are staffed by high pressure sales people armed with sophisticated selling techniques designed to get you to send them money. Don't be swayed by their carefully scripted sales pitches and pressure tactics. Even better, arm yourself in the best possible way against falling victim to these kinds of frauds--by knowing how these con men operate and being prepared to ignore their come-ons. If you receive a mailing promising you a free prize, or if you have been victimized in a free prize promotion through the mail, contact your local postmaster or the nearest Postal Inspector. |
