The broadcaster is today publishing a freephone number for viewers to ring if they wish to claim a refund of the £1 cost of entering the competition, a daily feature on the Channel 4 show, 'Richard and Judy'.
Channel 4 said it is working with telephone service provider Eckoh and the show's producer Cactus TV to investigate allegations that viewers have been solicited on-screen to continue entering the competition after the cut-off point has passed for selecting a potential winner.
A Channel 4 spokesman said: "We are still looking into these allegations and we believe it will be some time before we are in full possession of the facts, but our initial inquiries suggest that the problem affected not just the current series but also last summer's run of 'Richard and Judy'.
"Our first concern is for our viewers and we don't want to wait to complete what may be a lengthy review, but wish to take prompt and appropriate action while the issue is still at the forefront of their minds. Channel 4, Cactus and Eckoh have already confirmed that we will offer a refund to any viewer whose call has not been properly entered into this competition and today we are publishing details of how they can claim their refund.
"Channel 4's share of this refund will be funded out of the income that the channel has made from calls that have not been properly entered for this competition over the last two series. Any of this income remaining after the refunds have been made will be donated by Channel 4 to Great Ormond Street Hospital Children's Charity."
Details of the refund phone line and the charity donation will be announced to viewers by Richard Madeley and Judy Finnigan on today's edition of 'Richard & Judy'.
The spokesman said: "If our investigation ultimately concludes that the problem goes back further than last summer then the offer will be extended. We are committed to ensuring all our on air competitions are conducted fairly and transparently."
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