Churchcastle Limited distributed over 446,000 mailings under the name ‘Prize Line’ giving the impression that the recipient had been awarded a major prize. Consumers were urged to reply immediately by calling a premium rate number at a cost of £1.50 per minute.

At least 56,000 people called the premium rate number. With calls lasting up to five minutes, the total cost to some callers was as much as £7.50.

The OFT considered that the mailings were misleading as their layout and presentation gave the impression that, as a result of an entry in a previous competition, recipients had won a major prize such as £10,000 cash, a fitted kitchen, or a widescreen television.

In fact nearly everyone who responded was awarded a low value ‘giveaway’ item of a voucher booklet which was subject to restrictions on its use. The OFT also considered that the mailings constituted unlawful lotteries because the free entry route to participate in the prize draw was not publicised in such a way as to be likely to come to a recipient’s attention.

The company sent out similar mailings in the name ‘Prize Trust’ and ‘UK Prize Foundation’.

Churchcastle Limited and its director Neil Frogley had previously given undertakings to the OFT in June 2005 in relation to other premium rate prize mailings. However, the OFT believed that they had breached those undertakings.

The undertakings to the High Court were given under the Enterprise Act 2002 and relate to compliance with the Control of Misleading Advertisements Regulations 1988 and the Lotteries and Amusements Act 1976. If a company or person who gives an undertaking to the court subsequently breaches them, they may be held in contempt of court which can carry a penalty of imprisonment, a fine or asset seizure.

The OFT worked closely with Local Authority Trading Standards Services, the Advertising Standards Authority and ICSTIS in collecting evidence for the court action.

Christine Wade, Assistant Chief Executive, Consumer Advice and Trading Standards told UK Scams:

‘This company published misleading mailings that gave the impression that recipients had won a major prize in order to induce them to call a premium rate number. We will not hesitate to act to protect consumers from deceptive practices such as this.’

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Stopping Unsolicited Mail and Phone Calls

Listed below are the schemes that allow consumers to register their wish not to receive unsolicited marketing material or approaches.

Unsolicited Addressed Mail

The Direct Marketing Association (DMA) has a self-regulatory preference scheme for consumers who do not wish to receive unsolicited addressed marketing mail. It can also provide advice on how to reduce the amount of unaddressed mail received.

Addressed Direct Marketing Mail
Mailing Preference Service
Freepost 22
London
W1E 7EZ

Unaddressed Unsolicited Marketing Mail

Door to Door Council Manager
Direct Marketing Association (UK) Ltd
DMA House
70 Margaret Street
London,
W1W 8SS.

Unsolicited Marketing Faxes

It is unlawful to send an unsolicited fax to an individual, which includes consumers, sole traders and (except in Scotland) partnerships, without their prior consent.

There is a fax preference service, which allows businesses to register their wish not to receive unsolicited fax messages. Individuals may also register if they wish.
Registration telephone number: 0845 070 0702

Royal Mail Delivered Unaddressed Leaflets

To stop unaddressed leaflets delivered by the Royal Mail, consumers should write to:
Door to Door Council Manager
Direct Marketing Association (UK) Ltd
DMA House
70 Margaret Street
London W1W 8SS.
Telephone: 020 7291 3300
Fax: 020 7323 4165
Email: dma@dma.org.uk

Unsolicited Telephone Sales Calls

It is unlawful for a business to make an unsolicited telephone call to an individual, which includes consumers, sole traders and (except in Scotland) partnerships, if that person has registered with the Telephone Preference Service.

Telephone Preference Service
70 Margaret Street
London
SW1Y 4EE
Registration telephone number: 0845 070 0707

Unsolicited Marketing Emails

New controls on unsolicited commercial emails (UCE) came into force in December 2003. The regulations require that UCE can only be sent to an individual with the prior consent of the addressee, but with an exemption for UCE where the addressee has already given his or her email address direct to the sender in the context of the purchase of a product or service.

This opt-in protection will apply to individual, but not corporate, subscribers. Complaints about apparent breaches of these regulations should be reported to the Information Commissioners Office (ICO).

Information Commissioners Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF
Tel: 01625 845 700
Fax: 01625 524 510
Email: mail@ico.gsi.gov.uk

Unsolicited SMS Messages

New controls on SMS messages came into force in December 2003. The regulations require SMS messages to be sent only with the prior consent of the subscriber, but with an exemption where the subscriber has already given his or her mobile telephone number direct to a company in the context of the purchase of a product or service.

This opt-in protection will apply to individual, but not corporate subscribers. Complaints about apparent breaches of these regulations should be reported to the Information Commissioner’s Office (ICO).
Telephone: 01625 845 700
Email: mail@ico.gsi.gov.uk