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Maker of Rascals Gets Sued
Last time I posted we talked about a scam targeting seniors. Well, it would appear karma is alive and well and in full swing. Last week the Sewell Scooter Company was met with a law suit. The company, who are the makers of the popular Rascal Scooter, agreed to pay $100,000 to settle charges that it has misused contest entry forms to violate federal telemarketing rules, the Federal Trade Commission says.
Since 1987, Electric Mobility has held a monthly contest whose winner receives a Rascal, which sells for about $2,500.
“The net impression taken away by a consumer looking at the sweepstakes form would not be that ‘I am going to be called even though I’m on the national Do Not Call Registry”, said Nur-ul-Haq, a lawyer in the FTC’s Northeast Region office.
As this site has stated in the past, the law says once a business relationship is entered into by a consumer with a certain company, said company reserves the right to call that individual in the future about furthering or continuing their relationship. The main point of this suite was the that form used for the contest was not sufficient to be termed a established business relationship with the merchant.