Attorney General's News Release

February 15, 2000

Nixon warns of sweepstakes fraud; offers online shopping tips as part of National Consumer Protection Week

Jefferson City, Mo. — Attorney General Jay Nixon today offered Missouri consumers online shopping tips and warned them of sweepstakes fraud as part of National Consumer Protection Week (Feb. 14-20).

"The Internet is a perfect place for con artists to find new victims," Nixon said. "It is often difficult to tell legitimate Web sites from scams. Consumers need to be aware of the dangers of online shopping and be careful of where and how they make purchases."

Nixon said consumers should never use cash to make an Internet purchase and should use credit cards whenever possible. Credit card companies can often obtain refunds if something goes wrong with the purchase.

Many old scams, such as pyramid schemes and work-at-home scams, also are also showing up on the Internet, Nixon said. Consumers should be wary of jobs that require up-front money for supplies or training or money-making opportunities that promise commissions for recruiting other members.

"Consumers need to learn to recognize scams whether they are solicited through their mailbox or their in-box," Nixon said. "My advice to consumers is not to respond to unsolicited e-mails, which can often be scams."

Consumers also should be aware of scams and misrepresentations that can be part of sweepstakes, Nixon said. Sweepstakes can be totally fraudulent or mislead consumers to believe that making a purchase increases their chance of winning.

Consumers who think they have been ripped off by a sweepstakes should call the Attorney General's Consumer Protection Hotline at 800-392-8222. Nixon's office has set up a special toll-free number to handle question about consumer refunds from Direct American Marketers Inc., a company that ripped off thousands of Missourians. Missourians who called a 900-number to claim a sweepstakes prize should call 877-325-3587 to find out if they are entitled to a refund. They also can find information and a claims form on the Attorney General's Web site.

"Thousands of Missourians have been misled by sweepstakes companies into making purchases in the hopes they would win the big prize," Nixon said. "It is against the law to require a purchase to enter or win a sweepstakes."

Pat Raines of Willard, Mo., who has been active nationally in efforts to prevent sweepstakes fraud after her parents spent more than $100,000 on sweepstakes offers, was named "Consumer of the Year" by the National Association of Consumer Agency Administrators (NACAA). Raines has given testimony and numerous local and national media interviews about her family's situation and has started an organization -- Sweepstakes Survivors -- to help other victims and their families.

National Consumer Protection Week promotes consumer protection and education and is organized by American Association of Retired Persons, NACAA, National Association of Attorneys General, Federal Trade Commission, National Consumers League, Consumer Federation of America, U.S. Postal Inspection Service and U.S. Department of Justice.

Learn more about how to avoid getting taken in sweepstakes and contests

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818