Newsroom

OFT warns consumers about bogus charity ticket sellers

172/07    10 December 2007

The OFT is warning consumers about bogus charity ticket sellers who claim they are raising money for good causes in the run up to Christmas.

The OFT has received complaints and other information about agents selling prize draw tickets for around £2 each on high streets around the country, with the lure of holidays for winners. The sellers tell consumers that cash raised will be used to buy equipment, often large items like minibuses, for charities. The tickets and the sellers' promotional literature often show pictures of the charities or people the sellers claim they are raising money for.

However, in cases brought to the OFT's attention, although the sellers try to give the impression that they are working for a charity, or that all the money raised will go to charity:

• the tickets are in fact sold by private companies or organisations, not charities
• a significant amount of the money goes to the companies or organisations, not charity, and
• there is, in some cases, little or no connection between the company or organisation and the charities shown on the tickets.

The OFT is aware that the bogus charity ticket sellers have been active in Newcastle, Durham, York, Goole, Hull, Newark, Halifax, Crewe, Chester, Leicestershire, Cardiff and Chichester.

The OFT advises consumers to be on their guard and ask sellers a number of questions to make sure they know where their money is going before they hand it over:

• Are they collecting for a registered charity?
• If so, which one and what's the registered charity number?
• How much of the money raised is going to charity, and where does the rest go?
• Do they have any proof of the money going to charity (such as a written agreement with the charity authorising them to collect on its behalf)?

If the seller can only supply a registered company number this may mean that they are working for a private company registered with Companies House. It would not prove the company is a charity, or that the seller is raising money for a charity.

Mike Haley, Head of Consumer Protection at the OFT, said:

'Bogus charity ticket sellers prey on the good will of people who want to help good causes, particularly in the run up to Christmas. We want consumers to make sure they know where their money is going. Genuine charities will be happy to answer any questions about themselves and exactly where money ends up. If there are any doubts consumers should save their money and simply make a donation directly to a charity of their choice.'

NOTES

1. The Charity Commission has an online search of registered charities, which can also be accessed by calling 0845 3000 218.

2. Bogus charity ticket sellers may be in breach of the Control of Misleading Advertisement Regulations 1988; and the Lotteries and Amusements Act 1976, as well as other consumer protection legislation.

Back to:2007