In a twist, an Internet company is rewarding TV viewers who take the time to read the fine print in one of its commercials.

Last month, Hotels.com decided it has high time that TV viewers stopped fast forwarding their DVRs through their commercials. So it created a sweepstakes that required people to pause the recorded program so they could read the rules of the contest including how to enter.

*MOUSE PRINT:

The commercial only ran for a week. During that time, how many people do you think paused the commercial and actually entered the sweepstakes for a free trip?

350.

  McDonald’s unveiled a new promotion at the Super Bowl whereby random customers entering each of their restaurants will be selected to have their meal on the house if they demonstrate a bit of “lovin'” such as by hugging their kids, calling their mother to say I love you, doing a dance, etc.

The official rules state exactly how the promotion works. Each day at the predetermined time, the first customer to enter through a designated door, will be an unofficial winner. After they place their order, they will be approached by a manager who will tell them their order is free if they perform a particular lovin’ act.

As with any sweepstakes where money might change hands, the first rule is always “no purchase necessary.” This is because most sweepstakes are played in the context of a purchase (such getting a Monopoly game piece affixed to drink cups at McDonald’s). So game promoters are required to tell customers how to play the game free such as just by asking for a game piece, or by submitting a request for one by mail.

Paying a price for the chance of a prize is the definition of a lottery, which only the state and charitable organizations are allowed to operate. So how does McDonald’s present the “no purchase necessary” entry rules for this promotion?

*MOUSE PRINT:

The unofficial winner will be notified by the Lovin’ Lead that they are an unofficial winner after placing an order at the counter [emphasis added] or if the unofficial winner begins to leave the restaurant without placing an order at the counter. Participants do not need to make a McDonald’s purchase of any kind to be deemed an unofficial or official winner.

That is certainly a little bit awkward for the person not intending to make a purchase. So to play without paying, you have to go up to the counter, and loiter a little, or place a really big order (since it will be free if you win) but then tell the cashier you were just kidding, and begin to walk out?

From a practical standpoint what non-purchaser is going to go through this ridiculous charade for a chance at a prize? No, not even MrConsumer.

This is a fun and imaginative promotion. And it certainly is understandable why they don’t want to tell a customer when they first walk in that they have won for fear the customer will place an order for dozens of free meals. But McDonald’s really should be offering a more practical no purchase necessary method for playing the game.

Oh, incidentally, just by walking into the store, you have pre-agreed to resolve any disputes by arbitration. What, you didn’t go online before ordering your Big Mac to learn this? And some would (rightfully) say that this part of the rules is more troublesome and surprising than the no purchase necessary part.

Five years ago, Mouse Print* railed against a promotion run on NBC’s Deal or No Deal game show (see original story) whereby viewers could win $10,000 or $20,000 if they correctly guessed which of six briefcases the money was hidden in.

The problem was this: in order to play, you had to text in your answer with your cellphone, and only in fine print was it disclosed that each guess would cost you 99 cents as a premium text message charge. NBC raked in some $45 million from this promotion.

Under the laws of most states, any private venture where you have to pay a price for the chance of a prize is considered an illegal lottery. There was also an inconspicuously disclosed means to play for free. However, since that method required Internet access, and at that time about a third of homes did not have Internat at home, such a free means of entry might not have been sufficient to take the promotion out the realm of being a lottery.

Now, five years later, after NBC and the show’s producers were sued (as well as Fox for its lottery-like promotion on American Idol), the companies have settled the cases.

Everyone who paid 99 cents per call is now entitled to a refund.

*MOUSE PRINT:

For the Deal or No Deal Lucky Case Game, which aired between December 2005 and February 2008, you can file your claim here.

For American Idol’s Challenge Game, which aired Feb. – May 2007, you can file your claim here.

The filing deadline is August 10, 2012.

Last week, Neal E. Boyd won the top prize on NBC’s America’s Got Talent program.  In addition to headlining one show at a Las Vegas hotel, he also won a much ballyhooed $1,000,000, or so it seemed.

Throughout the season, host Jerry Springer reminded contestants of the big prize and the chance to become America’s most talented winner.

Let’s hope that Mr. Boyd wiped the stars out of his eyes long enough to read his contract with the program, and the fine print that rolled by during the credits at the end of the show.

*MOUSE PRINT:

Translation:  Like the lottery, the big prize is doled out in small increments over decades.  In this case, the winner would wind up getting less than $500 a week for 40 years.  That’s a mere $25,000 a year.  Hardly an amount that would change one’s life.  The alternative lump sum amount is not stated, but after taxes, it is likely to be in the $300,000 range. 

The million dollar prize certainly was an attention getter for the thousands that tried out for the show, and to create excitement amongst viewers.  The winner got his shot at fame, which he might say was priceless, and worth more than the somewhat illusory million dollar cash prize.

It appears that other reality shows have also touted big top prizes that were never quite what they appeared, and sometimes, they were not even awarded.  (See end of this story.)

Deal or No Deal is a big TV hit, but the millions of viewers who play their weekly “Lucky Case Game” may not be aware of all the charges associated it.

Four times during each program viewers are urged to grab their cellphones and text the number of the case (one through six) that has $10,000 or $20,000 hidden in it. One winner will be chosen by the end of the program from all those who guess the correct numbered case, and that person gets the cash prize.

*MOUSE PRINT:

“$.99 per text msg plus standard text messaging charges.Go to nbc.com/DOND to enter for free…”

Most people cannot read that disclosure because of its small size and the limited time it appears on the screen. So wouldn’t an oral disclosure of the price make sense and be fair? This show makes no such oral disclosure of the price in two out of the four times it promotes the sweepstakes.

In addition, there are additional charges that may wind up on your cell bill that are not disclosed during the TV program at all, and are only revealed in the official rules on the NBC website:

*MOUSE PRINT: 

“In addition, a premium text message charge of $.99 will apply to all text messages sent and received in connection with the Promotion. This charge will be billed on your wireless phone bill or deducted from your prepaid balance. You will receive a “thank you” text message that night including a DEAL OR NO DEAL Insider message. This message provides additional information about the Show, its host and/or products. The following day, you will receive a text message giving you the ability to opt-in to an SMS-based message program keeping you up to date on the latest cool Show information and more. You may stop receiving text messages at any time by responding “end”, “stop” or “quit” to any of the messages.”

So in addition to the 99¢ premium charge, your cell company will bill you for three separate text messages. The latter two are most likely promotional messages related to the show. For those without an unlimited texting plan, sending that one original text message will wind up costing anywhere from $1.14 to $1.44 (plus tax) depending on the price you are charged by your cell provider for text messaging. One can only hope that the 99¢ charge does not apply to each message “sent and received.” 

The public is spending a fortune on TV voting and games promotions. In fact, about $17 million was raked in by NBC on the Deal or No Deal “Lucky Case Game” just in the first three months of 2007. That one game accounts for nearly half the money spent in the US on all such premium texting promotions. [See story.]

But isn’t the Deal or No Deal game and other similar promotions tantamount to gambling?  You are paying a price for the chance of a prize, which is the definition of a “lottery” in most states, and most private companies are not allowed to conduct lotteries. Promotions like this are generally not considered lotteries if they offer a “no purchase necessary” means of playing the game. NBC does that, but in MrConsumer’s view, offering to play the game for free only via the Internet fails as a viable alternate means because one in four households do not have Internet access (and their only way to play is to pay via cellphone).

A similar text messaging promotion is currently being challenged in court in Georgia by a plaintiff who is claiming that the game on NBC’s Apprentice, “Get Rich with Trump” constituted an illegal lottery, even though it had a “no purchase necessary” means of entry. (See previous Mouse Print posting, and this newsletter [pdf].) 

Is it any surprise, then, that NBC now says their Deal or No Deal game is not open to residents of Georgia?