Are your only choices to accept or refuse the prize as described?
Because I can see a lot of times when the ‘winner’ would just have no use for the prize, for example, I’ve seen an apartment dweller win a backyard spa, and a past-middle aged woman from some small town in Montana win a biiiiig sailboat. Could you collect some lesser amount of money, maybe the wholesale price, maybe 50% of the MSRP, instead of what would be a white elephant? I mean, you could just turn down the year’s supply of Rice a Roni without a second thought, but it would hurt to win a 30k car and be a non-driving city dweller.
How about those who win a trip? Could they sell/give the right to take that trip to someone else?
I’ve always assumed that many of the prized from manufacturers worked more like gift certificates (for examply, the show displayed a living room set worth $1800, but the manufacture doesn’t care if you’d rather have a bedroom set, or any other combo of items they make that add up to the same value) but that assumption is based on nothing but what seems reasonable to me.
I remember watching a behind-the-scenes show about “The Price is Right” and they kind of covered that, at least as far as their show is concerned.
Each contestant on that show is offered their choice of either taking the actual prize or the cash equivalent of that prize. 99% choose to take the cash equivalent, however every so often they get someone who wants the actual prizes, in which case they do give the contestant the prize instead of cash.
I guess it would more or less be your choice, but since everyone has to pay taxes on what they win (at least if over $500) I am sure that accounts for most people opting for the cash equivalent option.
My personal experience I was a contestant on “Let’s Make a Deal” where I was picked to play but lost (yeah I picked door #2 - big chicken coop - insert loser sound effect here) Winners on that show were also offered either cash equivalent or the prizes, and everyone who won something were ushered into a nice little office with an IRS accountant to help them decide LOL.
I was told at the time my consolation prize was going to be a pair of binoculars worth $100 and would receive it in the mail within 6-8 weeks. I got a letter after about 8 weeks stating they did not have any more binoculars and would be sending me something else of equal value instead. About 4 weeks after that I received a plastic 35mm camera (no flash) of some brand I had never heard of before. I didn’t feel very consoled that is for sure! I think I would have rather had the chicken coop with the chickens…
Not quite. My wife’s niece works a game show production company in California. Other than cash, nothing is ever worth the price quoted on the show. Using TPIR example, you win a new car with a retail value of $25,000. The actual cost to supply the car to the game show in exchange for the promotion is $15,000. If you win the car, your tax liability is $15,000, not $25,000. If you choose the cash, you get the 15K. The suggested retail value is just for show. Plus everyone regardless of their home state, gets to pay 7% California tax on their winnings and everyone is liable for federal taxes. Some production companies will pay the tax, especially for out of state contestants, so they can take their prizes home with them. On a few rare occasions, she has seen folks forfeit their prize to avoid the taxes.
