Editorial: Sweepstakes promotions misleading

Monday, March 8, 1999 | 11:09 a.m.

Some of the heavy hitters among lobbyists have been enlisted by the sweepstakes industry to fend off legislation in Congress that would regulate sweepstakes promotion contests. But as the Associated Press noted last week, at least a few lobbyists are working on behalf of the new regulatory efforts.

The reasons, primarily, are personal. For instance, lobbyist Sharon Cranford believes the legislation is necessary after seeing what these promotions have done to her mother, whose savings vanished after she bought $40,000 in sweepstakes-related promotions in the false hope it would better her odds at winning.

While casinos and, to a lesser extent, lotteries are overseen by state regulators, sweepstakes companies are left to police themselves, which doesn't make any sense at all considering the abuses they have inflicted on unsuspecting consumers, especially seniors.

The regulatory oversight sought by Sen. Susan Collins, R-Maine, receives a hearing this week. The legislation would stop mailings that suggest they are endorsed by the government. In addition, mailings would have to state that no purchase is needed to enter the contest and could not indicate that buying a product gives an entry a higher priority. The company also would have to state the odds of winning.

The misleading promotions sent out by the sweepstakes industry have invited oversight by Congress. Some companies already have tried to eliminate deceptive advertising and now publish statements stating that no purchase is necessary to win. But Congress should pass legislation that prohibits unscrupulous practices, even if companies say they will voluntarily improve their behavior.

Some in the industry may promise to clean up their act, but trusting that they will keep their word is not easy, especially since the very art of deception has allowed them to profit all these years.