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June 18, 2007

Deal or No Deal: Surprise Texting Charges

Filed under: Sweepstakes,Telephone — Edgar (aka MrConsumer) @ 5:54 am

Deal or No Deal smallDeal 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? 




  ADV


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May 8, 2006

Apprentice Game: Get Rich with Trump*

Filed under: Sweepstakes — Edgar (aka MrConsumer) @ 6:31 am

Get Rich with Trump smallIf you are addicted to NBC’s Apprentice, you may be eager to try to win $10,000 by predicting which wannabe should be fired by the end of the show each week. To that end,the program created a “Get Rich with Trump” game inviting you to text message the letter of the loser to a particular number while the show is on the air.  They then hold a drawing amongst all entries, and one lucky person wins $10,000.

*MOUSE PRINT: What is not orally disclosed during each presentation of the game promo are two key facts in the mouse print:  (1) each text message you send costs 99 cents plus any text messages charges levied by your cell company, and (2) you can play the game for free by visiting nbc.com/APPRENTICE.  [Oral disclosure is only made during the first promo of the evening, and not during the subsequent three other ones. NBC Apprentice, May 1, 8, 2006]

Under state and federal law, a company cannot charge a price for the chance of a prize (the definition of a “lottery”) unless they also offer a “no purchase necessary” means of entry.  That is why NBC offers the web option, but certainly does not disclose its availability prominently.

The fee to play the game probably will come as a surprise to many people who call in, since in most presentations of the promotion, there is no oral disclosure of the price.  The newness of text messaging services poses a problem for existing laws, like the FTC’s “Pay Per Call” rule.  Those requirements which mandate oral disclosure of the price of a call were designed primarily for calls to 900 numbers.  It may be time to update the rules to include text messaging services as well.

“Get Rich with Trump” is more likely to make its promoters rich(er) rather than you.




  ADV


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March 28, 2006

Krispy Kreme: A Family Vacation for Life*

Filed under: Food/Groceries,Retail,Sweepstakes — Edgar (aka MrConsumer) @ 5:37 pm

Krispy Kreme Vacation Sweepstakes t

Sweet. Krispy Kreme is holding a sweepstakes and the top prize is a family vacation for life.  Assuming a 35 year old husband and wife and two kids won, adding up airfare and hotels for the next 40 years would be quite expensive… so what a valuable prize this is.  Or is it?

*MOUSE PRINT: “Ownership one week timeshare at a nationally recognized vacation club based in Orlando, FL and $5000 …”  Alternatively, you can take $15,000 instead of the timeshare and $5000. [Newspaper insert April 2, 2006]

Who would have expected that the prize was really a timeshare? Also, note that airfare is not part of your vacation.  You will surely use up your $5000 pretty quickly on that, and on maintenance fees normally charged on timeshares.  And, unless you always want to vacation in Orlando, there may be extra charges to swap your week for a week in another location.

Sweet?

P.S.  You don’t have to buy a dozen donuts to get a game ticket. You can just ask for one with no purchase necessary.




  ADV


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