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Kugler v. Market Development Corp.

Decided: April 26, 1973.

GEORGE F. KUGLER, JR., ATTORNEY GENERAL OF NEW JERSEY, PLAINTIFF,
v.
MARKET DEVELOPMENT CORPORATION, A FOREIGN CORPORATION, DEFENDANT



Kimmelman, J.s.c.

Kimmelman

The Attorney General of New Jersey has instituted this summary action in accordance with R. 4:67 and pursuant to the jurisdictional authority contained in N.J.S.A. 56:8-8 to enjoin the defendant Market Development Corporation (MDC) from alleged violations of the Consumer Fraud Act, N.J.S.A. 56:8-1, et seq.

MDC, a foreign corporation, conducts a direct interstate mail solicitation of New Jersey residents consisting of a form of congratulatory letter which purports to advise the recipient that he is a "Sweepstakes prize winner" and that his winnings consist of "A GLAMOROUS VACATION FOR TWO ADULTS" and a "TREASURE CHEST CRAMMED FULL OF NATIONALLY ADVERTISED HOUSEHOLD AND COSMETICS PRODUCTS". The recipient is also advised that he must, within ten (10) days, notify MDC of his intention to accept his prizes for which he is obliged to pay a $15 "service charge". Included with the notification letter is a bonus certificate with an official numbered sweepstakes ticket and receipt attached, a descriptive flyer regarding the "prizes", a registered gift certificate, and a return envelope addressed to defendant at Hollywood Building, Farmingdale, N.Y. 11735 or Cincinnati, Ohio 45224.

The aforementioned materials which collectively constitute the solicitation mailed to New Jersey residents by defendant contain various representations, expressed or by implication, including the following:

a) ". . . your lucky number has been computer selected as a Sweepstakes prize winner."

b) "YOU ARE TO RECEIVE THE FOLLOWING PRIZES: A GLAMOROUS VACATION FOR TWO ADULTS . . ."

c) One of the "vacations" available is at Walt Disney world where lodging and access to numerous attractions will be provided.

d) ". . . you will be our guest at the Hacienda located in the entertainment capitol (sic) of the world Las Vegas, Nevada."

e) ". . . the total intrinsic value of your winnings amounts to approximately $300.00."

f) "You will definitely enjoy the vacation of a lifetime . . ."

g) "Unless I hear from you within the next 10 days . . . I will be compelled to pass your winnings on to the ...


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