The culmination of every successful sweepstakes promotion involves the picking of a winner, or multiple winners, as applicable. Winner selection also provides the sweepstakes operator with the opportunity to generate positive publicity through the publication of the winner’s name and likeness.
Prior to awarding the prize and making an announcement as to the identity of the winner, however, sweepstakes operators should ensure that they are legally covered on two fronts: Sweepstakes operators should obtain executed copies of both Winners Affidavits and Publicity Releases from the prospective winners. While it may be possible, in many instances, to combine the two documents into one that contains both provisions, certain jurisdictions may not permit the two to be coupled.
What Should Be Included in A Winner’s Affidavit?
A Winner Affidavit should include, at a minimum, the following (which is not an exhaustive list):
· Confirmation of the prospective winner’s identity, including through the verification of personal information, such as full name, home address, age, etc.
· Confirmation that the winner meets the eligibility requirements set forth in the applicable sweepstakes’ rules. These might include age requirements, geographical requirements and a requirement that the prospective winner is not an employee, or living in the same household as an employee, of the sweepstakes operator.
· Verification of the prospective winner’s Social Security Number for tax purposes. This should be required where the approximate retail value of the prize(s) awarded exceed the applicable IRS tax reporting threshold.
The return of a fully executed Winner Affidavit should be a condition to receiving any applicable prize. Without such legal protection, sweepstakes operators could be liable in situations where a prize is awarded to the wrong individual.
Can the Winner Affidavit Be Combined with a Publicity Release?
Publicity Releases provide sweepstakes operators with the right to publish the name and likeness of the prize winners. Obtaining an executed Publicity Release is necessary if the sweepstakes operator wishes to identify the winner of the prize for promotional purposes. In most jurisdictions, it is permissible to combine Winner Affidavits with Publicity Releases.
However, some jurisdictions do not permit sweepstakes operators to request a Publicity Release in connection with receiving a prize. In such jurisdictions, it is essential that necessary provisions applicable to each are kept in separate documents. Further, the Publicity Release must be entirely optional for the prospective prize winner, with no impact on prize receipt should she/he refuse to sign.
Ensuring that the Sweepstakes Prize Awarding Process Is Optimized
Due to the importance of verifying the identities of prize winners, and the publicity value of promoting prize winners’ identities, it is essential that business owners obtain the advice and counsel of qualified attorneys to assist with the prize awarding process.
If you are interested in learning more about this topic or require assistances with your sweepstakes promotions, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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