Ask the Attorney General: Magazine Promotions

I received in the mail today a Certificate of Award from a magazine promotion company in Woodland Hills, California. The certificate informed me that I have been chosen to receive one of five following awards:

• 1996 PONTIAC GRAND AM
• 31" HOME ENTERTAINMENT PACKAGE
• $2,000 CASHIERS CHECK
• 6,724 SQUARE FOOT BUILDING LOT
• $1,000 CASHIERS CHECK

I followed the instructions on the certificate and called the telephone number today. The lady who answered the telephone told me that I would definitely receive one of the awards. She then asked me about what types of magazines I was interested in. She convinced me to subscribe to five magazines over a three-year period. She then asked me for the numbers that appear on the bottom of my checks. I gave her the numbers.

I am 90 years old and I live in a rest home. I guess that I acted foolishly in giving out my checking account number. How can I cancel this transaction? Should I close my checking account? I hope you can help me out of this mess.

Mrs. S.,
Essex, Connecticut

Dear Mrs. S:

Thank you for contacting my office so quickly after you became involved in this transaction. I requested a Senior Advocate on my staff to contact the customer service department of this company to cancel the transaction. I am pleased to inform you that the company has agreed to cancel.

It has been the experience of my office that the only way of ensuring that your checking account is not accessed without your permission through what is called a "demand draft" is to close your account. It is very important for consumers not to give out bank account numbers or credit card numbers to businesses with which they may not be familiar. I have uncovered numerous instances of consumers being subjected to multiple demand drafts submitted to their banks by unscrupulous telemarketers, as well as the submission of demand drafts in unauthorized amounts.

I am also concerned with the format of the Certificate of Award that originally enticed you into pursuing this transaction. It is illegal in Connecticut to conduct a promotion in which all or a substantial number of those consumers participating receive the same prize or opportunity. In these situations, the enterprise is simply a promotional scheme designed to make contact with prospective customers and is not a legitimate giveaway opportunity. I have successfully prosecuted a number of companies that employ this tactic. I have directed my staff to pursue action against this company.

Of further concern to me is the award that, according to the odds disclosed in the unclear and inconspicuous statement on the reverse side of the Certificate, you have a 499,992 in 500,000 chance of receiving is a building lot of apparently negative value located in Mexico. You may be required to pay $24 per year in maintenance fees, or even more, just to take title to this "award".

Richard Blumenthal