In an effort to boost car sales, Curt Warner Chevrolet Inc. mailed a "Scratch & Win" promotion to Vancouver residents over April 3-6, 2008. Consumers scratched the [image-nocss] card to reveal a number that determined their prize. The big bounty was $25,000 cash, but odds were such that recipients were nearly guaranteed to win a $40 gasoline voucher.
"It was a free gas offer that stank," Assistant AG Mary Lobdell said.
In all, 211 people presented the mailers to the dealership to collect their prize but obtaining the $40 in free gasoline proved more difficult than they expected.
"We tell consumers to read the fine print but salespeople need to do the same," Lobdell continued. "Businesses can be held liable for deceptive advertising campaigns, even those created or managed by other companies."
Curt Warner Chevrolet was already on probation after signing a 2007 agreement with the AG's Office to resolve concerns about its advertisements and promotions. Back then, the company paid $22,000 in attorneys' costs and promised to comply with certain marketing rules. The AG's Office alleged the new promotion was misleading and violated the 2007 agreement.
Consumers who attempted to redeem the winning card at the dealership received a certificate to participate in a rebate program. They had to pay $5 to enroll then purchase at least $100 of gasoline per month. Only after mailing those receipts would they receive a fuel gift card for $25.
Consumers had to continue buying gasoline and submitting receipts to receive additional gift cards.
At one point, Curt Warner Chevrolet ran out of certificates and attempted to substitute a vacation that required a $50 deposit. When a Vancouver man objected, the dealership promised to mail him a $100 fuel voucher. When it did not arrive by the promised date, he filed a complaint with the AG's Office.
The dealership eventually sent a certificate for enrollment in the rebate program, along with an apology note. But the consumer's problems did not end there. After buying gasoline and following the strict redemption rules, the customer received a $25 fuel gift card that was rejected by a local fuel station. He was told the card could only be used at Speedway and Superamerica stations in a handful of statesthe closest in Minnesota.
Under a new agreement to be filed in Thurston County Superior Court, Curt Warner Chevrolet will pay up to $8,440 in restitution to consumers who responded to its Scratch & Win promotion. Eligible consumers will receive a $40 card that can be used to buy gasoline from a nationally recognized brand with multiple stations in the Vancouver area.
A Florida business, Tidewater Marketing Global Consultants Inc., was behind the rebate program. The Florida Attorney General's Office sued the company in February 2009, and the company agreed to a state takeover. Consumers who visit www.freebiegas.com, one of the many websites where Tidewater previously advertised its rebate program, are now redirected to a page with information about how to file a claim. Company president Crystal Clark separately pled guilty to drug charges in connection with selling Oxycontin.
The Washington AG's Office posted a warning on its blog about gasoline vouchers offered by Tidewater and an Arizona-based company named BBZ Resource Management, which filed for bankruptcy. Since November 2008, angry consumers nationwide have posted more than 220 comments on the blog.
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