In addition, the Commission's complaint charged Craftmatic with placing millions of abandoned calls to consumers.
The sweepstakes form indicated that the consumers' telephone number was their entry number as well.
Using this information, Craftmatic allegedly placed tens of thousands of calls to consumers who entered the sweepstakes, even though the form did not indicate that by filling it out they would receive sales calls, and the company did not seek their express consent to call them.
Finally, the FTC alleged Craftmatic ignored consumers' requests to be placed on the company's entity-specific do not call list.
In settling the complaint, Craftmatic has agreed to pay a $4.4 million civil penalty, the second largest ever for DNC-related violations. Hanna Montana/Club Libby Lu Promotion Disaster A six-year old girl and her mother submitted a fake essay in order to win the grand prize of tickets to a sold-out Hanna Montana concert.
Persons could enter either for free via the Internet or through a text message that cost 99 cents.
At the end of the program the winning briefcase was revealed, and the winners were entered into a random drawing. 13-8-3(b)) authorize the filing and maintenance of a civil suit to recover money paid out or lost on account of one's participation in an illegal lottery?
Although the website entry method was free, if an entrant wished to enter via text messaging, there was a 99 cent charge per entry (plus standard text message rates).
Consumers from around the country filed lawsuits as representative actions under California's liberal Business and Professions Code as well as class actions under Connecticut and Massachusetts law.
The settlements totaled .5 million and various public service campaigns designed to inform that online gambling is illegal under US law. Quiznos/Subway User Generated Content Litigation Subway has sued Quiznos over a user generated content promotion where the rules made it clear that entries should depict Quiznos sandwiches as being superior to Subway's sandwiches.
Although Quiznos did not make the challenged submissions, Subway sued Quiznos charging that the submitted entries made false claims about Subway and otherwise disparaged the brand.