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Deceptive Mailings and Sweepstakes Promotions S. Hrg. 106±71 DECEPTIVE MAILINGS AND SWEEPSTAKES PROMOTIONS HEARINGS BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION MARCH 8 AND 9, 1999 Printed for the use of the Committee on Governmental Affairs ( S. Hrg. 106±71 DECEPTIVE MAILINGS AND SWEEPSTAKES PROMOTIONS HEARINGS BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION MARCH 8 AND 9, 1999 Printed for the use of the Committee on Governmental Affairs ( U.S. GOVERNMENT PRINTING OFFICE 57±308 cc WASHINGTON : 1999 For sale by the Superintendent of Documents, Congressional Sales Office U.S. Government Printing Office, Washington, DC 20402 COMMITTEE ON GOVERNMENTAL AFFAIRS FRED THOMPSON, Tennessee, Chairman WILLIAM V. ROTH, Jr., Delaware JOSEPH I. LIEBERMAN, Connecticut TED STEVENS, Alaska CARL LEVIN, Michigan SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico ROBERT G. TORRICELLI, New Jersey THAD COCHRAN, Mississippi MAX CLELAND, Georgia ARLEN SPECTER, Pennsylvania JOHN EDWARDS, North Carolina JUDD GREGG, New Hampshire HANNAH S. SISTARE, Staff Director and Counsel JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel LYNN L. BAKER, Chief Clerk PERMANENT SUBCOMMITTEE ON INVESTIGATIONS SUSAN M. COLLINS, Maine, Chairman WILLIAM V. ROTH, JR., Delaware CARL LEVIN, Michigan TED STEVENS, Alaska DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico MAX CLELAND, Georgia THAD COCHRAN, Mississippi JOHN EDWARDS, North Carolina ARLEN SPECTER, Pennsylvania TIMOTHY J. SHEA, Chief Counsel and Staff Director LINDA J. GUSTITUS, Minority Chief Counsel and Staff Director MARY D. ROBERTSON, Chief Clerk (II) C O N T E N T S Opening statements: Page Senator Collins ................................................................................................. 1, 49 Senator Levin .................................................................................................... 4, 51 Senator Stevens ................................................................................................ 6 Senator Edwards .............................................................................................. 6 Senator Akaka .................................................................................................. 52 Senator Durbin ................................................................................................. 56 Senator Specter ................................................................................................. 86 WITNESSES MONDAY, MARCH 8, 1999 Eustace A. Hall, Brandon, Florida, acompanied by Angela Hall, Tallahassee, Florida ................................................................................................................... 9 Carol Gelinas, Bangor, Maine ................................................................................ 11 Patti McElligott, Tyler, Texas ................................................................................ 12 Stephanie Beukema, Cambridge, Massachusetts ................................................. 14 Charles Doolittle, Inverness, Florida ..................................................................... 16 Karol Carter, DVM, Troy, Michigan ...................................................................... 17 J. Joseph Curran, Jr., Attorney General, State of Maryland ............................... 35 Virginia L. Tierney, Member, Board of Directors, American Association of Retired Persons .................................................................................................... 38 TUESDAY, MARCH 9, 1999 Naomi Bernstein, Vice President of Marketing Services, American Family Publishers ............................................................................................................. 59 Deborah J. Holland, Senior Vice President, Publishers Clearing House ............ 62 Peter Davenport, Senior Vice President, Global Marketing, The Reader's Di- gest Association, Incorporated ............................................................................ 65 Elizabeth Valk Long, Executive Vice President, Time, Inc. ................................. 68 ALPHABETICAL LIST OF WITNESSES Bernstein, Naomi: Testimony .......................................................................................................... 59 Prepared statement .......................................................................................... 130 Beukema, Stephanie: Testimony .......................................................................................................... 14 Prepared statement .......................................................................................... 112 Carter, DVM, Karol: Testimony .......................................................................................................... 17 Prepared statement .......................................................................................... 114 Curran, J. Joseph Jr.: Testimony .......................................................................................................... 35 Prepared statement .......................................................................................... 116 Davenport, Peter: Testimony .......................................................................................................... 65 Prepared statement .......................................................................................... 144 Doolittle, Charles: Testimony .......................................................................................................... 16 Prepared statement .......................................................................................... 113 Gelinas, Carol: Testimony .......................................................................................................... 11 Prepared statement .......................................................................................... 110 (III) IV Page Hall, Eustace A.: Testimony .......................................................................................................... 9 Prepared statement .......................................................................................... 109 Holland, Deborah J.: Testimony .......................................................................................................... 62 Prepared statement .......................................................................................... 133 Long, Elizabeth Valk: Testimony .......................................................................................................... 68 Prepared statement .......................................................................................... 149 McElligott, Patti: Testimony .......................................................................................................... 12 Prepared statement .......................................................................................... 111 Tierney, Virginia L.: Testimony .......................................................................................................... 38 Prepared statement with attachments ........................................................... 117 EXHIBITS * May Be Found In The Files of the Subcommittee 1. Publishers Clearing House Mailing: ``I'm in a bit of hot waterÐand only you can help me out.''ÐLetters from Dorothy Addeo, Contest Manager, Publishers Clearing House, dated October 10, 1997 ..................................... 155 2. Publishers Clearing House Mailing: ``Open Your Door To $31 Million'' ...... 157 3. Publishers Clearing House Mailing: ``Important Information About Your Order and Entry: Status Upgraded''ÐGold Club Mailing ............................. 159 4. Publishers Clearing House Mailing: ``Congratulations from both of us. You're guaranteed to win a prize . .'' ................................................... 165 5. Publishers Clearing House Mailing: `` `Please Help Me! 'ÐWhen your name came up as potential winner of the $3,500,000.00 SuperPrize, we ran a check of your file to see that everything was in place. Stamped across your file are the words `NO RECENT ORDER ACTIVITY: DROP FROM REGULAR MAILING LIST.' '' ............................................................. 171 6. American Family Publishers Mailing: ``Final Review Pending'' sent to Senator Susan M. Collins ................................................................................. 172 7. American Family Publishers Mailing: ``It's Down To A 2 Person Race For $11,000,000ÐYou And One Other Person . .'' ...................................... 178 8. Time Inc. Mailing: ``You Were Declared One of Our Latest Sweepstakes Winners And You're About To Be Paid $833,337.00 In Cash! '' .................... 179 9. Time Inc. Mailing: ``Senior Citizen Rate'' and ``Preferred Subscriber'' .......... 180 10. Time Inc. Mailing: Guaranteed and Bonded Sweepstakes IIIÐ ``$1,666,675.00 Grand Prize Announcement'' and ``Resident Sweepstakes Declaration'' ....................................................................................................... 182 11. Reader's Digest Mailing: ``Yes, Reward Entitlement, Granted and Guaran- teed'' and ``No, Reward Entitlement, Denied and Unwarranted.'' ................. 184 12. Reader's Digest Mailing: ``DeclarationÐ$2,000,000.00
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