Wednesday, February 28, 2007

NBC's "Lucky Case" Rip-off Scheme Spreads Like A Cancer Through Television


Suppose Howie Mandel, on NBC's popular "Deal or No Deal" game show, took time out from each broadcast to urge viewers to send in $1 apiece for the chance to "win" a $10,000 prize. And suppose far more than 10,000 viewers sent in their $1 in the hope of winning, leaving NBC with a tidy little profit?

That would be an illegal lottery, and pretty soon some folks--maybe even Howie--would be in jail.

About a year ago, we wrote about NBC's shameful "Lucky Case" promotion on "Deal", characterizing it as not much different than an illegal lottery because it requires entrants to pay a $.99 "premium text messaging charge" to enter.

Unfortunately, this scam is now spreading to other NBC shows, and even to mighty American Idol on Fox. NBC has a similar promotion on its "1 Vs. 100" game show and on Donald Trump's "The Apprentice". These "contests" are heavily promoted during the shows, during just about every commercial break.

The similar promotion on American Idol is not quite so pervasive--we've only seen one quick promo for it during each show, probably because Idol commercial time is just too valuable to squander.

So why are these rip-offs spreading? Easy: its all about the money. Just take a look at this June 2006 press release from the company that manages the Lucky Case game for NBC. According to the press release, there have been 57 million entries to the game, with just $1 million paid out! That means someone--presumably the cellular carriers and NBC--is pocketing nearly $56 million. No wonder this phenomenon is spreading like a cancer throughout television.

(To be sure, you can also enter these games on the internet, for free--if you can parse through the extremely small print on your television screen to figure that out. Presumably, only a very small fraction of entries are over the internet or NBC wouldn't devote so much time to the promotion.)

Furthermore, there is some small print in NBC's rules that suggests entrants may end up paying more than $1 per entry. The rules contain this little notation:

"In addition, a premium text message charge of $.99 will apply to all text messages sent and received in connection with the Promotion. You will receive a "thank you" text message the following day including a DEAL OR NO DEAL Insider message."

In other words, it appears that you will get charged another $.99 for the "thank you" message--isn't that sweet, paying for a thank you! (If you don't want to get the thank you's, you can pay another $.99 to text a message asking not to receive them.)

So it may be that NBC and its cell-phone carrier cronies have earned not $56 million, but over $100 million on this scam, and that's just from Deal or No Deal.

These slimy promotions should be OUTLAWED, plain and simple. They're actually more devious than a lottery. At least if you enter a straight lottery, each ticket you purchase has an even chance of winning the prize. In these TV contests, roughly 80 percent of the entries don't even have a shot at the drawing--but if you buy multiple tickets, i.e., pay a lot more, then you have shot!

Back when Eliott Spitzer was Attorney General of New York, we could've counted on him to do something about such an egregious scam. We hope a few legislators will get up the gumption to put a stop to this nonsense.

3 comments:

Anonymous said...

Jeez, take a happy pill or something. What a grouchass!

Anonymous said...

We did do something about this even before you wrote your article. Lawsuits were filed in georgia in february and now in California..Wish them luck!

Unknown said...

The United States version of the game show Deal or No Deal, (often shortened as Deal) hosted by Canadian actor-comedian Howie Mandel, premiered on December 19, 2005 on NBC. After an initial weeklong event and another in February 2006, the show aired multi-weekly from March to June 2006, typically on Mondays, Wednesdays, and Fridays. In September 2006, the show returned with another weeklong event, followed by regular airings through June 2007; sportsbook, a Monday night edition aired all season, with additional airings at various times through the season on Wednesdays, Thursdays, Fridays, and Sundays. The show returned for its third season on September 17, 2007, and is scheduled to air Wednesdays and Fridays. http://www.enterbet.com