Beware of the 'free prize' scams

SCAM artists are running numerous 'free prize' competitions that are nothing more than a con to rip people off, trading standards officials warned today.

The scams usually start with a letter, phone call or text message telling the recipient that they have won a big 'cash prize'.

To claim the prize, however, the person normally has to ring an expensive premium-rate phone line or send cash in advance to cover delivery.

Some of the conmen have used false testimonials from 'winners', complete with a photograph and part of their personal details to urge recipients to claim their prize.

'I was sceptical but I really did win and so could you!' exclaimed one lucky 'winner' in a letter accompanying a recent circular doing the rounds in London.

The Trading Standards Institute (TSI) warned today, however, that the 'prize' rarely exists or is nothing like the description.

Ron Gainsford, chief executive of TSI, said growing numbers of complaints have highlighted the need for urgent action.

'Bogus prize competitions are now probably the number one source of complaint to trading standards services across the UK.'

The body, which represents trading standards officials, believes one way to combat dodgy competitions is to limit the initial outlay 'winners' are expected to pay.

Stuart Pudney, from the TSI, said: 'If consumers have genuinely won a prize they should not be asked to pay money to collect it.

'In our view, there should be a legal maximum - say £1 - and anything more than that should be prohibited.'

The call for action came at the start of National Consumer Week, which starts today.

The TSI says prize competitions generally are not classed as gambling and therefore fall outside the scope of the new Gambling Bill.

Pudney said: 'We accept the bill is not really intended to cover prize draws, and that is the problem - there is no other legislation to control these.

'We believe that the scope of the bill should be widened to give protection to consumers from bogus prize competitions.'

The concerns of the TSI were echoed by Citizens Advice, which said that no one should have to part with money to get a cash prize.

Teresa Perchard, policy director at Citizens Advice, said: 'The best advice we can give is that people should not pay any money up front if they're told they have won a prize.

'It is easy to fall for such dodgy competitions who wouldn't be excited by the prospect of a great prize? But so often there is not a prize and it's almost impossible to get your money back once you've paid out.'

One example involved a women from Worcestershire who contacted her local trading standards bureau after receiving half a dozen letters from different companies saying she had won cash prizes of up to £100,000.

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