If you are stuck in such a situation, here is what to do.

Mr. Rohan, a resident of Nagpur, recently participated in a series of online giveaways hosted by a popular electronics company, “Zenith Innovations,” during a major national T20 cricket league. The rules were simple: subscribe to their online video channel and comment with the correct answer to win prizes, which included smartphones and cash rewards. Mr. Rohan was declared a winner of a cash prize of several thousand rupees and promptly submitted his contact and payment details as requested.

However, it has been nearly two months since the tournament concluded, and neither Mr. Rohan nor other winners have received their prizes. The company has only provided vague responses, stating they are in the process of contacting winners. Recently, Zenith Innovations posted an update mentioning they had discovered “irregularities” in the contest, such as multiple entries from some individuals. While they have not explicitly refused to pay, this excuse has made Mr. Rohan and other winners concerned that the company may be looking for a way to avoid its obligations. He is now contemplating his legal options to claim the prize he rightfully won.

Advice in such cases

When a company or brand fails to honour a prize from a giveaway or contest, it can be considered a breach of contract and an unfair trade practice. Here are the steps you can take:

• Send a Legal Notice: The first formal step is to have a lawyer send a detailed legal notice to the company. This notice will outline the facts of the contest, your win, the company’s failure to pay, and the legal consequences they could face. Often, a strong legal notice is enough to compel the company to resolve the matter.
• File a Consumer Complaint: Giveaways and contests are considered a form of service and promotion under the Consumer Protection Act, 2019. You can file a complaint before the appropriate District Consumer Disputes Redressal Commission for “unfair trade practices” and “deficiency in service.” This is often a cost-effective and relatively quick process.
• File a Civil Suit: You can file a suit for recovery of the prize money in a civil court. The giveaway constitutes a unilateral contract, which you accepted by fulfilling the conditions. The company’s failure to award the prize is a breach of this contract.

Applicable Sections of Law

Several laws can be invoked in such a situation:

• The Consumer Protection Act, 2019: This is the most relevant law. The company’s actions can be classified as an “unfair trade practice” under Section 2(47) of the Act. You are a “consumer” of their promotional service, and their failure to deliver the prize is a “deficiency in service” under Section 2(11).
• The Indian Contract Act, 1872: The giveaway announcement is an “offer,” and your participation by following the rules is an “acceptance.” This creates a binding contract. The company’s failure to pay is a breach of this contract, making them liable to fulfill their promise.
• The Bharatiya Nyaya Sanhita, 2023 (BNS): If it can be proven that the company had a dishonest intention from the very beginning and never intended to give away any prizes, it could amount to cheating. A police complaint could be filed under Section 318 of the BNS for cheating.

If you are the complainant

As the person who has been wronged, you need to act systematically to build a strong case.

• Document Everything: Gather all possible evidence. This includes screenshots of the giveaway announcement, the rules, the winner declaration post/message, and any communication you have had with the company (emails, DMs, comments).
• Issue a Formal Demand: Before proceeding legally, send a final, formal email or registered post letter demanding the prize and setting a clear deadline for them to respond. This demonstrates that you made a good-faith effort to resolve the issue directly.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think. He will draft a strong legal notice, which is the most crucial first step.
• Choose the Right Forum: Based on your lawyer’s advice, decide whether to approach a consumer court, which is generally faster and less expensive, or a civil court.

If you are the victim

Realizing you have been cheated out of a prize can be frustrating. As a victim, your focus should be on asserting your rights.

• Do Not Be Intimidated: Companies often use excuses like “irregularities” or “technical glitches” to deter winners. Do not be discouraged. If you followed the rules, you have a right to the prize.
• Preserve All Proof: Your primary strength is your evidence. Take screenshots and save all digital communication immediately, as the company might delete the posts or block you.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think. An advocate will explain your rights under the Consumer Protection Act and other relevant laws and guide you on the best course of action.
• Act Promptly: There are limitation periods for filing cases. For consumer complaints, the limit is two years from the date the cause of action arose (i.e., when the prize was not given). It is best to act quickly.

How the police behave in such cases

Approaching the police can be an option, but it has its challenges. In matters like these, the police often view the dispute as being of a “civil nature” (a broken promise or contract) rather than a “criminal” one (cheating). They might be reluctant to file a First Information Report (FIR) and may advise you to approach a consumer court or a civil court instead. However, if multiple winners come forward and there is strong evidence to suggest a pre-planned scam designed to deceive many people, the police may be more inclined to register a case under Section 318 of the BNS for cheating.

FAQs people normally have

What evidence is required?

To build a strong case, you will need:

• Screenshots of the original giveaway post, including the rules and the prizes offered.
• A screenshot of the announcement where you were declared a winner.
• Copies of all emails, messages, or comments exchanged with the company regarding the prize.
• The terms and conditions of the contest, if available.
• Contact details of other winners, if possible, to show a pattern of non-payment.

How long will the investigation take?

The timeline varies depending on the legal path you choose:

• Legal Notice: A company is typically given 15 to 30 days to respond to a legal notice. The issue is often resolved at this stage.
• Consumer Court: The Consumer Protection Act, 2019, aims for speedy disposal of cases, ideally within 3-5 months if there are no major complexities.
• Civil Suit: A civil suit is a much longer process and can take several years to conclude.
• Police Investigation: If an FIR is registered, the investigation timeline under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) can vary widely, from a few months to over a year, depending on the complexity of the case.

Advocate Sudhir Rao, Supreme Court of India