Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Sweepstakes operator violates prize promotion ban, ordered to pay $9.5M, (Feb 11, 2015)

By Greg Hammond, J.D.

A sweepstakes operator has admitted to violating an April 2007 consent order prohibiting her from engaging or participating in the advertisement, promotion, telemarketing, offering for sale, selling, or distribution of prize promotions. The operator agreed on February 3 to a $9.5 million judgment, as compensatory contempt relief (FTC v. Ewing, File No. 062 3025, Case No. 2:07-cv-000479-PMP-(GWF)).

In 2007, the FTC claimed that Crystal A. Ewing and other defendants engaged in a sweepstakes operation that enticed consumers to send money in order to win cash prizes. Ewing settled the FTC’s claims, agreeing to a nearly $1.4 million judgment and a ban on future prize promotion activity. Ewing has now admitted to engaging in another mail prize promotion scheme between 2008 and 2014 that bilked consumers out of more than $9.5 million.

“There’s a price to pay [for] violating a court order in an FTC case,” stated FTC Bureau of Consumer Protection Director Jessica Rich. In this case, the February 3, 2015 stipulated final judgment prohibits Ewing from engaging or participating in the advertisement, promotion, offering for sale, selling, or distribution of any product, program, or service by direct mail marketing. She is also required to pay more than $9.5 million as compensatory contempt relief.

Attorneys: Steven A. Dilibero (Dilibero and Associates) for Crystal Ewing. Alejandro G. Rosenberg, FTC.

News: Advertising ConsumerProtection FederalTradeCommissionNews