LITTLE ROCK -- Those contests at fairs and festivals that give consumers a slim chance to win a vacation, merchandise or cash often give businesses a sure chance to gain more information about a consumer.
Consumers should not assume that contest entry forms that include details such as home addresses, phone numbers and email addresses are thrown away once a winner is selected. Instead, some companies may use that information for mailings or sales calls.
Attorney General Dustin McDaniel issued a consumer alert to make sure Arkansans are aware of the consequences of signing up for contests or sweepstakes, whether it be in person at the fair or the mall, through the mail or on the Internet.
"Consumers should weigh the benefits of winning a prize against the drawbacks of providing personal information that could be used for marketing purposes," McDaniel said. "Read the details on entry forms to determine whether personal information might be sold to a third party or used to try to generate sales leads."
Most contests have terms and conditions that apply. If the fine print is not on a contest entry form, then consumers should ask questions about the company's marketing policies to the company holding the contest.
Consumers who sign up for sweepstakes or contests could be turning over data that would be sold or shared to other businesses or affiliates of the company operating the contest. That could mean more telemarketing calls, mailed promotional materials and unsolicited emails.
The terms and conditions on contest entries may state that companies operating the contests consider an entry as a waiver of rights under federal and state telemarketing laws. The entries could stipulate that, by entering, consumers confirm that they are authorizing sales calls to be made to their phone.
Even if the entries include such a waiver, it's probably invalid. Consumers should contact McDaniel's Consumer Protection Division if they sign up for contests in which the terms state that do-not-call protections are waived.
Also keep in mind that information may be used as a "lead generator" for businesses that offer home improvements or timeshares, for instance. These might subject consumers to high-pressure sales pitches.
McDaniel encouraged consumers to remember this additional advice prior to signing up for a contest or sweepstakes in person, online or through the mail:
• "Free" cruises or vacations may still require consumers to pay undisclosed fees and costs, such as their own transportation.
• Avoid signing up for contests in which a business refuses to provide a phone number or address by which a consumer can request removal from a mailing list.
• Consumers should never have to pay a processing fee or upfront "taxes" to claim a prize.
• Never provide checking account or credit card numbers over the phone to telemarketers who claim to be calling about a sweepstakes or prize.
• If someone claims a consumer has won a contest that he or she does not remember entering, it is most likely a scam.
For more information about this and other consumer issues, visit the attorney general's Consumer Protection Division website -- www.GotYourBackArkansas.org -- or call 1-800-482-8982.
Business on 12/17/2014