Each year UK Consumers lose an estimated £1 billion to a variety of scams that exploit low cost, mass marketing techniques to target victims.

City of York Trading Standards department is keen to make sure you do not become one of them.

New scams from the UK and overseas appear every day - so it's important to know how to spot them. For example, you may receive an unsolicited mailing stating you have won a prize in a draw or lottery (even though you have not entered one).

Perhaps all you need to do is phone a premium rate number (all UK premium rate numbers start with 090 and their charges range from 10p to £1.50 per minute. The money paid for the call is shared between the telephone company and the organisation offering the 'prizes'). Think twice. Be sceptical. Is it really likely that someone you don't know, who has contacted you out of the blue will give you something for nothing?

The Office of Fair Trading (OFT) has obtained undertakings from the promoter of two premium rate prize competitions that it will not use misleading advertising to promote such competitions. If any of the undertakings are breached, the OFT could seek a court order. Failure to obey a court order could result in proceedings for contempt of court. The company involved had sent unsolicited mailings to nearly 1.4 million consumers telling them they were entitled to claim one of the awards listed and urging them to act quickly to claim their "prize" by phoning a premium rate number at a cost of £1.50 per minute. Calls lasted up to five minutes, each call costing about £7.50 and more than 190,000 people called the premium rate numbers used in these promotions.

In the OFT's view the mailings were misleading as their layout and presentation gave the impression that the recipient had been lucky and had won a major cash prize of £5,000 or £10,000. In fact nearly everyone who responded only received "giveaway" items such as vouchers for discounted holidays, health and leisure services or a family portrait. These vouchers were subject to restrictions.

If you have concerns about any promotion or you have been a victim of a scam, then telephone Consumer Direct on 08454 04 05 06, who can put you in touch with appropriate organisations such as the Trading Standards Service, the OFT, The Advertising Standards Authority and ICSTIS (Independent Committee for the Supervision of Standards of Telephone Information Services).

Updated: 11:01 Thursday, July 21, 2005