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More Deceptive Practices

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Presentation on theme: "More Deceptive Practices"— Presentation transcript:

1 More Deceptive Practices
26.2

2 Illegal Lotteries To be a lottery, a gambling scheme or game must have 3 elements: A required payment of money or something else of value to participate The winner will be determined by chance rather than by skill A prize to be won

3 Holding or participating in such a gambling scheme is illegal and violations are subject to fine and imprisonment However, many states have exempted by statute certain religious groups from the lottery prohibition Your church can have Bingo Also, some states hold their own lotteries to generate revenues for state projects

4 Keep in mind, the use of lotteries by businesses to promote sales remains an unfair method of competition. Ex-- A national magazine planned to increase subscriptions by giving away prizes of up to $1 million in a drawing. People contacted in a huge mail campaign could enter the drawing by return mail, whether or not they actually subscribed to the magazine. Instructions on how to enter would be placed in the text of the promotional material so a person contacted would have to read about the magazine in order to find out how to enter the drawing. A senior officer of the magazine canceled the plans because she thought it was an illegal lottery. Was she correct?

5 A:

6 Other prohibited schemes are often disguised as legitimates business undertakings—sometimes called confidence games. Ex--chain letter pyramid scheme.

7 A Facebook chain letter scam swindles the participant by convincing him/her to send money to the person whose name appears at the top of an enclosed list. After sending the money, the recipient is supposed to place his/her name at the bottom of the list and copy the letter and list to friends. The swindler’s name and aliases comprise the first two or more names on the initial list. This is a felony under the law in most states


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