Issue Date:  -  Monday, 12 April 1999

Consumers warned about overseas competitions

Fair Trading Commissioner Patrick Walker today warned consumers to be wary of overseas competitions offering free prizes.

Mr Walker said the Ministry of Fair Trading had seen a sudden upsurge in the number of inquiries from consumers about unsolicited mail from overseas advising them that they had won cash and prizes in competitions they have not entered.

"The Ministry has received dozens of inquiries this week from WA people who have received unsolicited material from Canada, Denmark and the United Kingdom" Mr Walker said.

Consumers were typically being asked to send money to overseas post office boxes in order to claim their prizes.

"Careful reading of fine print conditions often shows that the chances of winning cash or prizes of any significant value are extremely remote," Mr Walker said.

"Giveaway 'gems' are usually included as part of offers however the Ministry's previous experience is that these 'precious stones' have been worth far less than the cost of redeeming them," he said.

Mr Walker said there were risks in sending money overseas and that consumers needed to be especially wary about competitions they had not entered.