The U.S House of Representatives endorsed a compromise bill that seeks to stop the deceptive practices of some sweepstakes companies by toughening disclosure requirements.
The legislation would require companies to make clear that no purchase is necessary to win the contest and that buying magazine subscriptions or other products do not advance a recipient’s chance of winning, it was reported.
Companies would also be prohibited from stating on an envelope that a recipient is a winner unless he or she actually has actually won a prize. Also, sweepstakes companies must honor written requests that people be removed from mailing lists.
The U.S. Postal Service would have the power to subpoena violators and impose civil penalties up to $1 million.
The measure was passed by voice vote on Tuesday. The Senate must act on the bill before it is given to the president for his signature.
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