Legislation establishing the first set of national standards for direct mail sweepstakes solicitations was sent to the full Senate for consideration last week with the unanimous approval of its Governmental Affairs Committee.
No date has been set for the Senate to vote on the Deceptive Mail Prevention and Enforcement Act (S-335), sponsored by Sen. Susan Collins (R-ME). However, there were indications a vote sending the measure to the House for action after being reviewed by its Government Reform and Judiciary Committees could be taken by mid-summer.
Specifically the bill would require clearly displayed and understandable statements explaining all terms and conditions of the promotion, including the odds of winning; that no purchase is necessary to enter or win and making a purchase “will not improve the chances of winning.”
It also calls for sweepstakes operators to state the schedule of payments for any cash prizes and the estimated retail value and nature of any non-cash prize.
The U.S. Postal Inspection Service would be given the authority to subpoena the records of suspected fraudulent sweepstakes operations; to seize and stop mail from suspected fraudulent operations, and impose civil penalties of up to $2 million on fraudulent sweepstakes operators.
The Direct Marketing Association is “promoting its passage although there are still some things in it that we’re uncomfortable with,” said Richard A. Barton, senior vice president, Congressional matters, without going into detail. He predicted an early Senate vote on the measure.
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