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Sweepstakes Scams - The "1 Out of 5 Prizes" Scheme Lawyers

What is the "1 Out of 5 Prizes" Scheme?

The "1 Out of 5 Prizes" scheme usually takes the form of a telemarketing calling you to inform you that you have been selected to win one or more prizes that they then list off to you.  Sometimes the prize is a "free" annual subscription to a certain magazine.  Other times there is a choice of potential prizes, such as a car, a truck, a fishing boat, a bracelet, or a watch.   In any case, the telemarketer will tell you in order to receive this prize you must contribute some amount of money.  The reason for contributing that money will vary:
  • It is necessary to buy a product in order to qualify for the sweepstakes
  • The money is contributed to a charitable cause, and as a reward for your donation you will be given a gift
  • There are certain processing fees in order to ship the gift to you
 It then follows that you have to make payment arrangements.  This may take the form of a check or money order, or it may be made by giving your credit card number or even your bank account number for those deals that end at midnight that night. 

So What's the Catch?
The catch is that you probably paid a fairly large sum of money for something that is not worth nearly that amount.  Compare the "discount" price given for the magazine subscription to the how much it would be to just order a normal subscription through the magazine itself.  You will most likely find that with all the costs that are added into the "discount" price you probably paid more than a subscription directly through the magazine. As for those lists of potential prizes you could win (the car, the boat, the bracelet, or the watch), the fact is that you will never be able to win the first two, and as for the bracelet or watch, they are going to be cheap knockoffs that are not nearly as nice as described by the telemarketer, and are not nearly worth the amount you paid for them. In some cases you will not even receive the gift you were promised.  This can be particularly devastating to those consumers who have been tricked into giving out their credit card or bank account numbers to these telemarketers, as now the scammer has complete access to spend money using your credit line. 

What Should I Do if I Am the Victim of One of These Prize Scams?
If you feel you have been tricked into paying for something due to false advertising or an outright con, you may want to contact a consumer fraud attorney.  Your attorney can let you know what your options are help you decide the best course of action.  You may even be entitled to compensation and punitive damages in a lawsuit against the person or company who took your money.

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