Are companies legally obligated to award prizes when running sweepstakes?

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I was thinking that all of the sweepstakes and giveaways I saw as a kid (i.e. ‘Tune in on Monday for the secret word!’) were probably great ways to get people to watch shows. Is there a law that states/stated they actually have to give the prizes they promoted away? Otherwise it seems like a pretty inexpensive way to draw ratings…

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Anonymous 0 Comments

Yes. as if they dont then it’s Fraud and they would be open to legal action to be taken against them by everyone that participated.

in some locations even you are forced to disclose the actual chances ie: if you require a buy in to participate. but the ultimate point is that you cannot setup a legal contest if you cannot provide the prizes.

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