Free Prizes . . . Often Not Worth the Cost

If you receive a letter, post card or phone call announcing that you are the winner of a "free" prize, beware!  Many of the "free prizes" could end up costing you far more than the prize is worth.  The Division of Consumer Protection has a few tips to help spot "free" prize schemes and help avoid losing money in search of something "free".

1. A great sounding deal on products you have little use for, regardless of the price or any associated prize, is probably not a wise purchase.  For example, if you are not already in the habit of taking vitamins, purchasing a year's supply just to qualify for a trip to an exotic sounding location, is probably a questionable purchase.  More often than not, any trip you "win" from these kind of scams have considerable hidden charges or other qualifying restrictions that make the "free" trip ultimately cost you a considerable sum.
    
2. Look out for attached strings.  Free should mean absolutely no cost.  Any offer that requires the purchase of another item, two for one deals, or other restrictions are nothing more than a marketing gimmick.  At best, a consumer might be getting a bargain price, but you are not really getting something free.  You did have to purchase something and therefore, some cash outlay is required.
    
3. Often, a free prize requires the disclosure of your credit card number to "validate" the offer.  Never give out your credit card number to strangers.  Many times fraudulent solicitors tell consumers that a credit card is required by the government for tax purposes or for identification; this is a lie and a sure sign someone is trying to scam you.
    
4. Look out for offers that have conditions required to receive the free prize.  Often scam artists will tell you that you have to pay a shipping or handling fee or some type of "membership" fee in order to receive your award.  Most likely the fees you have to pay will be much more than the value of your prize.  Legitimate prize give-a-ways will deliver any prize you have won, to your door, free of charge and with no strings attached.
    
5. Be alert to "900" numbers.  Prize notification "winners" are often instructed to call a "900" number for more information or "verification".  These telephone numbers can, and often do, charge exorbitant toll rates.  So, while you are on hold, waiting to find out about your prize the company is hitting your phone bill with a five or ten dollar a minute toll charge.  Even if you discover the prize offer is worthless, you have still been ripped off.  In many cases, the prize offer is nothing more than ploy to get you to call the "900" number.
    
6. Read all the fine print of any notification.  Be aware of the small print that announces the odds of winning the desirable prizes.  Often those chances read as 1:500,000 (one chance out of five hundred thousand) or 1:1,000,000 (one chance out of a million)!  Many people invest and lose money because they failed to realize their chances at the "big prize" is not a sure thing, but instead a one in a million chance.

Federal and Utah laws require that if an offer for a free gift requires you to listen to a sales presentation of some type prior to receiving the gift, then that requirement must be made clear when the prize offer is made.  Often these sales pitches are high-pressure and very intense and the prize might not be worth the time or effort needed in order to receive it.