So you’ve announced the winners of your sweepstakes and surprisingly some winners haven’t bothered to claim their sweepstakes prizes! While this scenario doesn’t happen often, it still does from time to time.
What do you do with an unclaimed sweepstakes prize? Do all prizes offered in a sweepstakes have to be given away? Here’s what you should know.
When Is a Sweepstakes Prize Considered As Unclaimed?
A sweepstakes prize is considered as unclaimed when the maximum amount of time for a winner to claim their prize, per your Official Rules, has expired. At this point, you have two options: choose a new winner for the prize or don’t award the prize at all.
Choose a New Winner
If you decide to choose a new winner or alternate winner, you will then have to perform the drawing and winner notification process again. Let participants know that you didn’t select a winner for the prize yet and that a new winner will be announced. You should also make sure that you have sent a notice to the old winner letting them know that they have forfeited their prize.
Don’t Award the Sweepstakes Prize at All
On the other hand, you may decide that awarding the sweepstakes prize is no longer worth it. Perhaps the prize has expired or can no longer be fulfilled due to some circumstances. If this is the case, how you handle the matter will depend on sweepstakes laws.
To ensure that you are following the law, find out in advance of the launch of your promotion what the legalities are in your state concerning unclaimed prizes.
Registration and Bonding to Award Prizes
For this specific reason, there are multiple states that require registration and bonding for sweepstakes to ensure that the sweepstakes prize will in fact be awarded to a winner. So if you plan to recall your prizes or want the option to, check with your jurisdiction first to make sure that it is permitted.
Mention Unclaimed Prizes in the Sweepstakes Official Rules
If it’s legally permissible for you to keep sweepstakes prizes and you want the option to do so, this needs to be explicitly stated in your Official Sweepstakes Rules. Make sure to mention that “unclaimed prizes will not be awarded” and what the exact conditions are for awarding the prize.
For example, you may require winners to provide identification including proof of age and residency. Winners may also be required to sign affidavits regarding the use of their identification in the verification process.
Need help with sweepstakes or contest management? Call 305–505–5393 or email us with your questions.
