Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES NEWS: Florida Attorney General sues American Children’s Cancer Association for raffle scam, (Jul 21, 2014)

By Linda O’Brien, J.D., LL.M.

The Florida Attorney General’s office has filed suit against the Washington, New Jersey-based American Children’s Cancer Association (ACCA) for operating an illegal raffle, Florida Attorney General Pamela Bondi announced on July 18.

ACCA states that its purpose is to provide financial assistance to children with cancer and their families, using donations. In July 2013, ACCA registered with the Florida Department of Agriculture and Consumer Services to solicit charitable contributions out of a Boca Raton, Florida virtual office without disclosing an injunction obtained against the company by the State of New Jersey. Additionally, ACCA President Shaun Heusen, Vice President Joseph Way, and Real Estate Agent Peter Kelly allegedly violated the Florida Deceptive and Unfair Trade Practices Act, Gambling Act, and Solicitation of Funds Act by soliciting charitable contributions for a Florida Dream Home Raffle with no realistic intent or ability to award such prize.

ACCA allegedly offered and sold $80 raffle tickets to give away a multi-million dollar “Florida Dream Home,” located in Lighthouse Point, Florida, according to the complaint. The organization’s 2012 tax return, the most recent available, states that ACCA allegedly collected just over $116,000 in revenue in 2011, but spent less than $6,000 on program expenses. The balance of the funds was used for salaries, marketing, and operating expenses.

The complaint alleges that the defendants violated the following state laws: (1) The Florida Deceptive and Unfair Trade Practices Act by using deceptive acts and unfair practices in the marketing and sale of the Dream House Raffle tickets; (2) The Gambling Act by failing to conspicuously disclose that no purchase or contribution was necessary in all of the ACCA’s advertisements, tickets, entry forms, and other materials in connection with the raffle; and (3) The Solicitation Funds Act by knowingly submitting false and inaccurate information to the Florida Department of Agriculture and Consumer Services and making false, deceptive, and misleading representations to the public in connection with solicitations for the Florida Dream Home raffle.

The complaint requests that the court issue a permanent injunction and order the defendants to pay full restitution to all consumers, civil penalties amounting to $10,000 per violation, and attorney’s fees. The lawsuit seeks to prohibit the defendants from engaging in any business activity or operation involving the solicitation of contributions through any drawing, raffle or drawing by chance.

“Taking advantage of people who are seeking to make charitable contributions to help others is deplorable, and we will hold these individuals accountable for these alleged actions,” said Attorney General Bondi.

News: StateUnfairTradePractices ConsumerProtection FloridaNews