Wednesday, February 27, 2008

Update on NBC's "Lucky Case" Rip-off


A couple times awhile back we wrote about a scam NBC was perpetrating on its popular "Deal or No Deal" game show. We thought we'd bring you an update.


We at the Curmudgeon actually like "Deal," notwithstanding that there's no skill whatsoever involved in the "game." Chalk it up to host Howie Mandel's endearing personality, an engaging cast of contestants and, of course, those 26 beautiful models holding briefcases.


But one thing we didn't like about the show was it's "Lucky Case" promotion during commercial breaks. In the "Lucky Case" game, a home viewer could win $10,000 (or sometimes more on a special night, as above) by picking the right case, out of six, and then winning a drawing of the viewers who picked that case. You were encouraged to text message your choice, and you could enter multiple times--meaning you could assure yourself of having picked the right case by texting in six different choices.


That would all be a lot of fun, but for one thing: in very small print at the bottom of the screen, NBC disclosed a 99 cents "premium" text message charge for every one of those texted choices.


In other words, for a buck a shot, you got to participate in a lottery with hundreds of thousands of other people for a shot at a measly $10,000. Where did the rest of the money go? Of course, it went to NBC and a couple of companies that came up with the scam--as of a year ago, NBC had raked in about $57 million on the game, but paid out only $1 million. (See "NBC's 'Lucky Case' Rip-off Scheme Spreads Like A Cancer Through Television.")


When we last visited the issue, some lawsuits were popping up from disgruntled contestants who, having gotten their phone bills, realized that NBC's promotion was "lucky" only for NBC.


Since then, NBC has quietly discontinued the promotion. Why? Because the courts have made clear that the issue is serious enough that it could go to trial and expose the network to significant damages.


Nothing has been decided on the merits yet, but as this news article indicates, the Georgia Supreme Court recently heard argument on whether Georgia law allows a participant in an illegal lottery to collect damages, and if so are the damages due from the lottery's organizer.


Now Georgia is a conservative state with a pro-business Supreme Court, but they still don't like Yankee carpetbaggers down there, so there's a good chance NBC could end up on the wrong end of that ruling.


Our favorite part of NBC's argument to the Georgia supremes: NBC is not the "winner" of the game, and thus should not be held liable if damages can be pursued. Hmm. Let's see: you set up a game in which you rake in $57 million and give out $1 million; we think that makes you the winner.

1 comment:

Anonymous said...

I watched that show for awhile a few years back. When I watched it, it was clear that there was a charge for calling in choices, but if you got online and sent your choice, it was free.