WRITTEN QUESTION E-3814/02

by Graham Watson (ELDR) to the Commission

(9 January 2003)

Subject: Prize mailing scams

Is the Commission aware of the increasing volume of fraudulent mail offers designed to award recipients with a false prize in return for a handling fee? There would however appear to be a loophole whereby they are posted from and have a return address to another European country.

In the light of this loophole, would the Commission consider introducing legal measures that harmonise postal laws, in an attempt to blanket ban fraudulent mailings across EU and non-EU countries?

Answer given by Mr Byrne on behalf of the Commission

(17 February 2003)

The Commission receives an increasing number of complaints related to fraudulent prize-winning games and including prize offers communicated by e-mail. Currently prize-winning games are not regulated at Community level. However, the Commission proposal for a Parliament and Council Regulation concerning sales promotions in the Internal Market(1) plans to cover a sub-category of prize-winning games.

Prize-winning games which are of a promotional nature (e.g., promoting a good or service) are covered by the proposed Regulation on sales promotions. This proposal has received strong support from the Parliament and is currently being discussed in the Council. It sets out a number of information requirements which the promoter has to fulfil, in particular on any costs involved other than the purchase of the promoted good or service, the likely chances of winning, the commercial value of the prize, the closing date for receipt of entries etc. This information should be provided in a clear and unambiguous manner.

Other prize-winning games, involving a wagering stake (including in the form of a handling fee) are considered to be gambling activities which are, as far as the Commission is aware, strictly regulated in all Member States.

The subject of the question of the Honourable Member concerns more specifically fraudulent non-promotional prize-winning games, involving false claims concerning won prizes. As far as the Commission is aware fraudulent prize-winning games, are banned in all Member States. If, as the Honourable Member suggests, such offers are emanating from one Member State, such problems could be reduced through improved cross-border co-operation. Following the large measure of support given to the Commission's Green paper on Community consumer protection(2), the Commission has included in its work programme for 2003 a proposal for a legal instrument on administrative co-operation between public bodies responsible for consumer protection which should be adopted in the near future.

Since the problem highlighted by the Honourable Member does not appear to result from lack of harmonisation of national laws on postal services, the Commission, therefore, has no plans to modify Directive 97/67/EC of the Parliament and of the Council of 19 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service(3) as amended by Directive 2002/39/EC of the Parliament and of the Council of 10 June 2002, with regard to the further opening to competition of Community postal services(4).

(1) OJ C 75 E, 26.3.2002.

(2) COM(2001) 531 final.

(3) OJ L 15, 21.1.1998.

(4) OJ L 176, 5.7.2002.