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How to scam $5000 for a new PC if you have a mildly popular website.

Gunbuster

Gunbuster

Diamond Member
I used to be heavily into entering contests and sweepstakes so something about people scamming really gets my goat. I saw this pop up on my facebook news feed: http://www.techoftomorrow.com/2013/pc/rosewill-red-dawn-extreme-giveaway/

This guy is having a “giveaway” where he sells $25 entries to win his old used rig. Essentially 199 idiots are going to get boned while this guy gets $5000 for a new PC. To top it off he is deleting all comments that point out he is breaking the law by having an unlicensed lottery/raffle.
 
Is he not doing what he says he is doing? I guess I don't understand how it is a scam?

-KeithP
 
I don't see this as being a scam exactly. He's selling music packs for $25 a pop and each pack includes an entry for the drawing. Also, there's nothing shady going on that I can see. The terms of the drawing are being spelled out clearly. I assume everyone who buys one knows exactly what they are getting for it.
 
SlitheryDee said:
I don't see this as being a scam exactly. He's selling music packs for $25 a pop and each pack includes an entry for the drawing. Also, there's nothing shady going on that I can see. The terms of the drawing are being spelled out clearly. I assume everyone who buys one knows exactly what they are getting for it.
Click to expand...

It's not a scam at all. It's a damned good idea, and everybody gets something for their money. State lottery? Now that's a scam...
 
This is better than the chick who ran up 30K in CC debt buying things she couldnt afford. Then she got like 60K in donations from people on the internet to pay off her CC.
 
KeithP said:
Is he not doing what he says he is doing? I guess I don't understand how it is a scam?

-KeithP
Click to expand...

You have to do a lot of things to have a legal giveaway. Like having clearly stated rules, issuing a 1099 to the winner, and providing an option for entering without a purchase.

A mega corporation cant do it to sell a product and neither can this guy. Do you think they have lawyers write a page full of rules just for fun?
 
Gunbuster said:
You have to do a lot of things to have a legal giveaway. Like having clearly stated rules, issuing a 1099 to the winner, and providing an option for entering without a purchase.

A mega corporation cant do it to sell a product and neither can this guy. Do you think they have lawyers write a page full of rules just for fun?
Click to expand...

Why do you care? Why does the government need to be involved in a private giveaway? I guess you think laws were were spread on the people by god himself, and are the one divine truth that guides us all. If you want some music, and a 1:200 chance of getting a computer, give him $25. If not, STFU, and let the people that want to participate have some fun.
 
Gunbuster said:
You have to do a lot of things to have a legal giveaway. Like having clearly stated rules, issuing a 1099 to the winner, and providing an option for entering without a purchase.

A mega corporation cant do it to sell a product and neither can this guy. Do you think they have lawyers write a page full of rules just for fun?
Click to expand...

They say they wanted to do a raffle but couldn't because of legal issues. This is their way of getting around that. If what he's doing now is also illegal I can only assume that he doesn't know that, since it's clear that he's making the effort to do it legally. If he didn't care whether he broke the law or not, why not just make it a raffle and have done with it?

The deleting of comments is pretty fishy though.
 
SlitheryDee said:
I don't see this as being a scam exactly. He's selling music packs for $25 a pop and each pack includes an entry for the drawing. Also, there's nothing shady going on that I can see. The terms of the drawing are being spelled out clearly. I assume everyone who buys one knows exactly what they are getting for it.
Click to expand...

I believe most states have laws regarding a raffle (which this essentially is) and required purchases for said contest.

In fact, Texas doesn't allow raffles by individuals:

[updated: 5/10/2010]
We have become aware of a proliferation of illegal raffle activity in Texas. It is important for Texans to be familiar with the law before conducting or participating in a raffle.

Examples of unlawful raffles include any raffle that is:
  • conducted by an individual
  • conducted by a for profit business
  • conducted by a charity that does not qualify
Click to expand...
 
SlitheryDee said:
They say they wanted to do a raffle but couldn't because of legal issues. This is their way of getting around that. If what he's doing now is also illegal I can only assume that he doesn't know that, since it's clear that he's making the effort to do it legally. If he didn't care whether he broke the law or not, why not just make it a raffle and have done with it?

The deleting of comments is pretty fishy though.
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I'm not sure how this ISN'T a raffle. You are buying a chance to win something. It's irrelevant if something else is attached to it.
 
CPA said:
I'm not sure how this ISN'T a raffle. You are buying a chance to win something. It's irrelevant if something else is attached to it.
Click to expand...

Are trading card games raffles? You buy a pack of cards, and have a chance to get an "ultra-rare" or whatever card that might be worth $100. I've always felt that the laws against non-government lotto are absurd, this is just one of many loopholes I've seen used.
 
Since you can't enter without purchasing the music pack, this would be considered illegal gambling under the laws of most states. Every state that allows promotional games in connection with the sale of goods or services also requires that there is an "equal dignity" means of getting a free entry. Moreover, because he's doing this over the Internet, he is risking federal prosecution for wire fraud, among other things. This is really a bad idea.
 
I don't understand the laws on lotteries/raffles. I suppose there's some justification for regulating it because its so easy to have phoney ones where the prize doesn't actually exist or the drawing is rigged.

But, don't know if its the same in US, but over here they always seem to be thinly disgused as 'quizes', where they ask some idiotic question like "what letter comes after A in the alphabet, is it (a) A (b) B or (c) C?". It seems that somehow gets round some law or other. Or they have entry forms in product packets by then say in small print 'no purchase necessary' as you can also write to them and ask for an entry form.
 
People use raffle for fundraising all the time, many offices even do work raffles to help fund their end of year party. While it may not technically legal, no one cares.
 
DCal430 said:
People use raffle for fundraising all the time, many offices even do work raffles to help fund their end of year party. While it may not technically legal, no one cares.
Click to expand...

There are so many things that people do in Texas that are illegal under our gaming and racing law. However, law enforcement usually only goes after the blatant acts like 8 liners(that give out tickets to be redeemed for gift certificates) in game rooms.

I've won several raffles and never have I been given a 1099. That includes winning a ~$2000 computer in a raffle conducted by a video game company in 2001. I am pretty sure most raffles that are carried out are not technically legal.

Doing an illegal raffle over the internet is just begging for trouble though.
 
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