A company mails consumers cards telling them they have won valuable prizes. When a consumer attempts to collect her prize, she discovers that she must pay $500 to collect the goods. In this case the FTC is likely to:
A) seek a consent decree to end the practice
B) only allow consumers to use credit cards, not cash, to purchase the goods
C) have nothing to do with this case, it falls with the jurisdiction of the FBI
D) any of the other choices
E) none of the other choices are correct

Question

Quizplus · Accepted Answer

The FTC is likely to seek a consent decree to end the practice, as this tactic of mailing deceptive prize notifications to consumers is a violation of the FTC Act, which prohibits deceptive and unfair business practices. The requirement to pay a fee to collect a prize is also a common tactic of scams and frauds, which the FTC seeks to prevent and prosecute.

A Company Mails Consumers Cards Telling Them They Have Won