Sweepstakes Scams

 By Bruce Shawkey

P.T. Barnum had it right more than a century ago: "There's a sucker born every minute." H.L. Mencken was also pretty perceptive: "Nobody ever went broke underestimating the intelligence of the American people."

Take the practice of sweepstakes. They've been around since the late 18th Century. Certainly, many were (and are) legitimate. But there have been scams through the ages, most notably in the second half of the 20th Century. 

One of the lesser known ones was sponsored by the Wayfarers Club of Bala-Cynwyd, Pa. This 1968 sweepstakes promised a chance to win  a luxurious month-along "ROUND-THE-WORLD HOLIDAY" for two!  You’ll love "doing" PARIS - ROME - RIO - HAWAII - TOKYO ... all the glittering capitals of the world! All expenses  paid including air fare, deluxe hotel accommodations, in¬ternationally famous shows and show places — plus $500.00  cash "pocket money" to spend any way you please!

But once you filled out the the Certificate to Prize Headquarters, you were enrolled in the "world famous"  Wayfarers Club, which promised such benefits as:

* travel-accident insurance worth up to $22,000.00 CASH;

* subscription to "Budget Travel," a bi-monthly club magazine;

* world-wide telephone reservation service for hotels, motels, and resorts;

* advance reports on latest travel events before they happen: Luxury cruises on the Rhine ... made-to-order bullfights in Ecuador ... guide to London’s private gaming clubs and discotheques ... inside information the traveler on the seat next to yours would give his eyeteeth to know! Plus book reviews, new travel gear (at members' prices); and more.

All for the incredible price of $15. No purchased necessary, of course, but the implied message in the mailing that enrollment in the club would increase your chances of winning.

Probably the biggest offender was Publishers Clearing house, which ran its first sweepstakes in 1967. The stakes were small at first: Prizes ranged from $1 to $10 with a 1 in 10 chance of winning. But prizes grew quickly, with the grand prize topping out at $250,000.

The FTC finally took action against Publishers Clearing House for misleading consumers about how to enter sweepstakes and making them believe a purchase was necessary or would increase their chances of winning. The FTC alleged that PCH used "patterns and graphics" to trick consumers, including those who were older and lower-income, into believing they needed to purchase products to enter sweepstakes or that purchasing would improve their chances.

Of course, our family received the annual mailer. My dad recognized it was a scam and fashioned a letter to Robert Treller, head of PCH, and thanked him profusely for the grand prize and said the money would help him out of financial difficulty. Mr. Treller actually responded to my dad's letter, attempting to clear up the "confusion" that Dad only had a chance of the prize. 

The annual sweepstakes grew and grew, employing celebrity spokesperson, including Ed McMahon, Steve Harvey, and others.

The Publishers Clearing House sweepstakes are still active, even though the company filed for bankruptcy. PCH stated they will continue to offer free-to-play entertainment and award prizes, including their weekly $10,000 sweepstakes. While the company has largely exited its print marketing business, PCH still earns revenue from digital advertising and online games with a chance to win cash prizes.