Contests often exchange
data on consumers

Question: What are the state and federal laws regarding sweepstakes? What if a company promotes a sweepstakes and doesn't award any of the prizes it said it would? I'm talking about a company in Hawaii that does surveys among Japanese and mainland visitors, promising them a free return trip to Hawaii if they complete a survey and their entry is chosen. Instead, the information on the entry blank (name, address, home/work/ cell phone numbers and e-mail address) is sold to various companies. I feel this is extremely dishonest and unethical, and I would like to know if it is also illegal.

Answer: If you believe the company isn't awarding any prizes as promoted, call the state Office of Consumer Protection at 587-3222 with details.

But selling or trading information about consumers is a common, not necessarily illegal, practice.

"If it were a local sweepstakes and someone has suspicion that the prize was not being distributed, then they should contact us," said Stephen Levins, executive director of the Office of Consumer Protection. "Generally, in these kinds of cases, we would not know about a problem unless someone brings it to our attention."

The office has not received any similar complaints, he said.

Under state law, it is illegal to promote a contest or sweepstakes in which prizes might not be awarded, unless the following disclosures are made in a "conspicuous manner" before an entry is accepted: that some or all of the prizes might not be awarded and the date(s) on which the winners will be determined.

Also, real property cannot be offered as a prize unless the promoter files and maintains a minimum $10,000 bond with the state.

Meanwhile, the Better Business Bureau of Hawaii says people should be careful when signing up for a contest at a trade show or similar events, because "you run the risk of having your personal information sold or shared with other telemarketers."

It advises people to ask how your information will be used before submitting your entry blank and to read the fine print.

It also offered this general information:

>> Legitimate sweepstakes don't require payment or purchase to enter. If you have to pay taxes or shipping or handling charges, it's not a prize.
>> Legitimate sponsors identify themselves prominently and clearly disclose terms and conditions.
>> If notified by mail, check the postmark. If it was sent as bulk rate, it's unlikely that you've won a big prize.
>> Don't send any check or money order by overnight delivery or courier to claim your prize.
>> Don't be deceived by endorsements from a well-known celebrity.
>> Be skeptical when asked to attend a sales meeting to win a prize.
>> Beware of promoters using toll-free 800 numbers that direct you to pay-per-call 900 numbers.
>> Don't give checking, credit card or other bank account information over the phone.

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