We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
THE HIGHEST COURT of the European Union has ruled that marketers can no longer contact consumers to say they have “won” a prize only to ask them to pay a fee to collect their winnings.
Consumers are often told they have “won” prizes through promotions involving scratch cards in newspapers and magazines, or even individually addressed postal letters. Such promotions inform the recipient they are a winner of a prize but often stipulate that they telephone a premium rate number, send a text, or pay delivery and insurance costs in order to claim it.
The EU Court of Justice (ECJ) ruling follows the UK’s Office of Fair Trading suing five companies for using mail-marketing tactics in violation of consumer protection laws. The OFT said consumers had been informed they had won a prize or equivalent benefit – the value of which could be “either considerable or merely symbolic” – only to be asked to incur costs for collection.
In one example offered by the court, a marketer told consumers they had won a Mediterranean cruise. In order to claim their “prize”, however, winners had to pay for trip insurance, a supplement to obtain a one-bed or two-bed cabin and, during the voyage, the cost of food and drink, plus the port fees. Thus, consumers would have had to pay £399 per person (€490 pp) in order to participate in the cruise.
In its judgement, the Court held that EU law prohibits aggressive practices which give the consumer the impression that they had already won a prize when they must then incur a cost to claim.
The ECJ ruled such practises are prohibited even if the cost imposed on the consumer is minimal (eg the price of a stamp) when “compared with the value of the prize or where it does not procure the trader any benefit”.
It also ruled that such “aggressive practises” are prohibited even if a number of methods are offered to the consumer in order to obtain the prize and even if one of those methods is free of charge.
To embed this post, copy the code below on your site
Yahoo!!! A temporary reduction of junk mail and magazine inserts!! Lets all enjoy this until a new scheme is devised (:{)
This is good news for consumers. Too many people are getting scammed in very clever ways, and these scams need to be outlawed .
now let them ban companies taking money from mobile phones
without the consumer signing a written contract. I am afraid even to press the unsubscribe option from these companies as they use it as any excuse to take money. zamano is worth millions because of this. how many people have their phone credit disappear and they don’t know what has happened to it.
People who claim their “prize” deserve to be ripped off ( unless your over 70) in order to hopefully learn a lesson, similar to the Nigerian email scam, ohh send me 25000 grand and you can have a share of my fathers 100 million fortune. If the penny does not drop after all your friends have won a prize from the same scratch cards in the paper, you deserve it
Who got out of the wrong side of the bed today. That’s a bit harsh no one deserves to be ripped off
Well there’s a brain box.
Actually, this isn’t like the Nigerian scam.
This is person on the phone pushing very hard to make people buy a product, praying on people who either don’t have a high enough IQ to see through this or who are incapable of turning a person down like that.
That you don’t fall for it is nice, but to say other people deserve it is a bit strange, me thinks.
This is great news, good to see the powers that be doing a bit of good work for a change.
Or the latest from McAfee Antivirus telling you that you have loads of viruses and looking for you to “upgrade” to remove said viruses. And I don’t even recall downloading McAfee, ever.
have your say