LAWSUITS NEWS & LEGAL INFORMATION
Consumer Direct Enterprises et al.
Carson City, NV: (Apr-23-07) The Federal Trade Commission filed charges against a sweepstakes operation that enticed consumers to send money in order to win cash prizes thereby violating federal laws. The operation consisted of Nevada-based Crystal A. Ewing, David F. Ewing, Consumer Direct Enterprises LLC, Classic Productions LLC, Response Processing LLC, and Top Choice Inc., d/b/a/ Sweepstakes Information Reporting Services, Cash Claim Information Center, Consumer Award Advisory Service, Mega Marketing Group, and Prize Distribution Center.
Through 2004 and 2005, the operation sent letters inducing consumers in the US, Canada, and the United Kingdom to send money in order to collect lump-sum checks ranging from $245,189 to $728,577. The letters led many consumers to believe that they had to pay a processing fee to receive the cash prize, but none of those who sent the fee received the promised prize, the complaint alleges. Instead, most consumers received a check for a nominal amount, such as $1, and a list of sweepstakes promotions offered by independent sponsors. The settlement imposes a judgment of $10,219,664, which will be suspended subject to the following conditions: the defendants must pay $1 million within five days, plus $375,000 within 12 months. [INTERNET BUSINESS LAW SERVICE: SWEEPSTAKES FRAUD]
Published on Apr-26-07
Through 2004 and 2005, the operation sent letters inducing consumers in the US, Canada, and the United Kingdom to send money in order to collect lump-sum checks ranging from $245,189 to $728,577. The letters led many consumers to believe that they had to pay a processing fee to receive the cash prize, but none of those who sent the fee received the promised prize, the complaint alleges. Instead, most consumers received a check for a nominal amount, such as $1, and a list of sweepstakes promotions offered by independent sponsors. The settlement imposes a judgment of $10,219,664, which will be suspended subject to the following conditions: the defendants must pay $1 million within five days, plus $375,000 within 12 months. [INTERNET BUSINESS LAW SERVICE: SWEEPSTAKES FRAUD]
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