BBB Warns: Don't Fall Victim to a Beauty Pageant that Could Break the Bank

Many advertisements seeking beauty pageant participants read, “Win Big Prizes! Scholarships! Cash! Become the Next Supermodel!” These ads are appealing to parents of young children, teens and others who are convinced they have what it takes to become the next big star. Participating in a beauty pageant may provide a rewarding experience, but many would-be contestants find that some pageant promoters do not deliver what they promise. While there are legitimate pageants, there are also those – whose only purpose is to fatten the pockets of promoters.

Before entering into a pageant, parents and others who want to get involved, BBB suggests you consider the following questions:

How long has the company been operating pageants? Who are the directors? Usually pageants are operated by for-profit organizations that solicit participants by mail or print advertising, or by broadcast media, to compete for recognition and prizes from the promoter.

What is the total cost of pageant participation for both the entrant and the chaperone? Oftentimes, family or business sponsors are asked to pay a sponsorship fee, which can vary in size, to the pageant promoter to cover hotel rental fees, awards, administrative costs and salary for company personnel and to generate company profits. Also, keep in mind that there are other costs for entrants, such as clothing, make-up, food and lodging.

Can the location (place of business) of the pageant company be verified? Where and when will the actual pageant be held? What accommodations are provided for contestants? Will there be adequate supervision?

Do all of the details add up? Are there judges and what are their qualifications? Do they have any affiliation with the company? Are refunds possible if a contestant decides to withdraw from the pageant? How are the winners chosen? What criteria are used for selection? What are the obligations of the winning contestant? What do former contestants and winners have to say about the pageant? Ask the company for references. Finally, what benefit will be derived from participating or winning?

Do the winnings sound too good to be true? If so, they probably are. Be sure to read any contract carefully and thoroughly in advance of entering a pageant to understand the rights and responsibilities of the winner or other contestants.

Georgia Specific:

A beauty pageant, with participants competing on the basis of physical beauty, skill, talent, poise or personality, may prove to be a happy or a disappointing experience. To protect against financial risk, Georgia law has specific provisions regulating pageants that charge application or admission fees and that are run by for-profit organizations (O.C.G.A. Sections 10-1-830 through 10-1-838). The law exempts beauty contests run by nonprofit organizations and those where all of the money generated goes to a nonprofit organization.

Operators of for-profit beauty pageants must maintain a sufficient amount of funds to reimburse the contestants if an event is canceled. Georgia law requires either the posting of a $10,000 cash bond, made payable to the Governor, or placement of all contestants’ fees in an escrow account that cannot be accessed until the pageant is over.

If a pageant is canceled, the operator must promptly return contestants’ paid entrance fees. However, a contestant who does not appear for the competition is not legally entitled to a refund of the entrance fee.

Before collecting any fees from a contestant, the organizer must provide each contestant a letter containing the following:

• The operator’s name, address and telephone number;
• The name, address and telephone number of the organization or individual conducting the pageant;
• The names of the pageants the operator usually promotes;
• The name and address of the authorized business representative;
• The name, address and telephone number where the contestant’s fees are held;
• The name, address and telephone number of the company holding the bond; and
• The statement: “The State of Georgia requires bonding or escrow of pageants conducted for the profit of the operators.”

For more information or to search for companies you can trust, please visit bbb.org/atlanta.