Most marketers dream of the perfect sweepstakes moment: the winner gets the call, they’re thrilled, and the prize lands exactly as promised. But real life isn’t always so tidy.

Stock runs out. Flights get canceled. Winners ghost you. And sometimes, what seemed funny in the planning stage turns out to be a legal nightmare (ask Hooters about the “Toyota” incident).

This article breaks down what marketers need to know when it comes to prize fulfillment, substitutions, and unclaimed prizes. These issues are easier to manage than you might think—if your official rules are clear, fair, and legally sound.

When a Prize Can’t Be Fulfilled: Substitution Basics

Let’s say your prize vendor can’t deliver the promised product. Maybe it’s backordered, discontinued, or impacted by a shipping delay. What now?

In sweepstakes law, the solution is simple: you can offer a substitute prize, but only if your rules say so.

What the Law Says

• Substitutions must be clearly disclosed in your official rules
  
• The replacement must be of equal or greater value
  
• Arbitrary downgrades (say, swapping a car for a scooter) are not permitted
  
• Some states may require notifying the winner and documenting the change
  

If you skip the substitution clause or make a swap without warning, you risk legal trouble—typically under deceptive marketing or breach of contract claims.

What the Experts Say

“Prize delivery can fall apart for reasons outside your control. But if you want to offer a substitute, you need to say that upfront. A clear clause in your official rules allows you to make necessary changes without creating legal or reputational risk.”

Allison Fitzpatrick, Partner, Davis+Gilbert LLP

Real-World Lessons: Don’t Promise a Fighter Jet (Unless You Have One)

Two famous examples prove that clarity in prize description matters just as much as your substitution clause:

• Hooters (2001) ran a sales contest offering a “new Toyota” to the top-performing waitress. When the winner showed up, she got a toy Yoda (yes, from Star Wars). She sued for fraudulent misrepresentation—and won enough to buy a real car.
  
• Pepsi (1996) ran a points-for-prizes campaign featuring a Harrier Fighter Jet in the commercial. A law student saved enough points (with some legal creativity) and tried to claim the jet. Pepsi declined. The court ruled in Pepsi’s favor, but the case became a cautionary tale in clearly defining prize terms.
  

Bottom line: Be specific about what’s being awarded, and use disclaimers if you’re referencing anything humorous or symbolic.

Unclaimed Prizes: What If the Winner Never Responds?

Not all prize fulfillment issues are on your end. Sometimes, winners disappear.

Common Causes

• Invalid or incomplete contact details
  
• Missed emails or calls
  
• Winner declines or no longer qualifies
  
• Deadline to respond passes without action
  

What You Can Do

• Set a response deadline in your official rules (usually 10–30 days)
  
• Clearly state what happens if a prize goes unclaimed
  
• Select alternate winners using the same process as the original draw
  
• Document your attempts to contact the winner
  

Some states may have reporting requirements for unclaimed prizes, especially if the prize is cash or gift cards. In rare cases, unclaimed funds must be turned over to the state (this is known as escheatment law).

Alternate Winners: Planning for No-Shows

To avoid awkward re-draws, many brands select backup winners during the original prize draw. Here’s how to do it right:

• Include a clause in your rules allowing for alternate winners
  
• Use the same drawing process and eligibility checks
  
• Keep clear records of how alternates were selected
  
• Notify and award them using the same steps as the original winner
  

Alternate winners offer a built-in safety net—and they help ensure your campaign wraps up cleanly without public complaints or legal friction.

What the Law Says Abroad

Prize substitution and unclaimed prize rules are also relevant internationally:

• UK & Ireland: Prizes must be as advertised or of equal value. Substitutions are allowed if disclosed in advance.
  
• EU: Similar rules apply, with emphasis on data protection when contacting winners.
  
• Canada: Substitution and unclaimed prize rules vary by province, but transparency and fairness are core themes.
  
• Australia: Trade promotions must include clear prize descriptions, and sponsors must treat entrants fairly if a prize becomes unavailable.
  

Best Practices for Marketers

Topic	Legal Essentials	Marketing Best Practice
Prize Substitution	Must be disclosed; value must match or exceed	Include a substitution clause in your rules
Unclaimed Prizes	Define deadlines and process for forfeiture	Set clear response windows and communicate promptly
Alternate Winners	Must be drawn and treated fairly	Plan and document backup draws in advance
Force Majeure	Covers delays due to major unforeseen events	Add a simple clause allowing postponement or changes

How BeeLiked Helps You Avoid Prize Drama

At BeeLiked, we help brands build smart, legally sound promotions that are ready for real-world surprises. Whether you’re giving away a gift card or an international trip, our platform supports:

• Custom terms and conditions with built-in prize substitution clauses
  
• Automated alternate winner selection and notification
  
• Digital audit trails to show when winners were selected and contacted
  
• A full suite of game types including spin wheels, claw grabbers, scratch-offs, slot machines, and more
  

We don’t provide legal advice, but our technology is designed to support best practices for sweepstakes compliance—so your campaign runs smoothly, even when life doesn’t.

Final Thoughts

Even the best-planned promotion can hit a bump when a prize can’t be delivered or a winner goes silent. The solution isn’t complicated. Just plan ahead:

• Define your prizes clearly and avoid ambiguity
  
• Include substitution, alternate winner, and unclaimed prize clauses
  
• Track winner outreach and document everything
  
• Avoid jokes, vagueness, or viral stunts unless you’re willing to deliver
  

Need help writing sweepstakes rules or automating prize fulfillment? BeeLiked can help. Let’s build promotions that are fun, fair, and frustration-free.