In addition, the FTC alleged that the respondents disseminated mailers claiming that the recipients won prizes to lure them and their families to auto sales events. The mailer included a purported official winning code with an instant cash price of $2,500.
The mailer invited consumers to check if they are a “guaranteed winner” by pulling a tab to see if the code is similar to the one in the “combination box.” It reads, “If your digital electronic combination box matches the official winning code and one of the codes below, you are a guaranteed winner. . . .”
In the mailer, consumers were instructed to go to a car dealership to “claim” the prize. However, a small print on the back of the mailer stated that a consumer’s chance to win a prize is 1-in-52,000.
The Commission alleged that Traffic Jam Events and Jeansonne II violated Section 5 (a) of the FTC Act and Section 144 of the Truth in Lending Act (TILA) and Section 226.24(d) of Regulation Z, 12 C.F.R. §226.24(d).
The FTC’s original complaint against the respondents did not include their alleged violation of the TILA and Regulation Z.
State law enforcement actions
The FTC noted that the State Attorneys General of Florida, Indiana, and Kansas recently sued Traffic Jam Events and its owner for deceptive marketing.
