‘Pay to claim your prize’ promotions outlawed

The EU’s highest court has ruled that promotions which give a false impression that consumers have won a prize, but for which they have to pay money to claim it, are illegal.

The ruling by the European Court of Justice means that such promotions, which frequently take the form of inserts and scratch cards in newspapers and magazines, are prohibited.

Many consumers also receive similar notices in the post informing the “lucky” recipient that they have won a prize. However, such promotions stipulate that the winner must either call a premium rate number, send a text message, or apply by post to claim it. In some cases, the winner also has to pay delivery and insurance costs.