Learn from History
When Giveaways Go Wrong
Major brands have faced criminal charges, violent protests, and permanent reputation damage from rigged or mismanaged giveaways. These cautionary tales show why transparency is not optional.
- Total fraud in the McDonalds case
- $24M
- Deaths from Pepsi riots
- 5
- Years of the McDonalds fraud
- 12
McDonalds
Monopoly Game Fraud (1989-2001)
The most infamous giveaway scam in history. Between 1989-2001, the McDonalds Monopoly game was secretly rigged by an insider, Jerome Jacobson (known as Uncle Jerry), who stole winning tickets and distributed them among friends and associates, defrauding the company of over $24 million.
Outcome & Impact
- 8 people criminally indicted
- The HBO documentary McMillions exposed the scandal
- Massive reputational damage
- Complete restructuring of promotional security
Key Lesson
Even the largest brands in the world can fall victim to insider fraud without proper third-party verification.
Pepsi
Philippines Number Fever Disaster
In 1992, the Pepsi "Number Fever" promotion accidentally printed 800,000 winning bottle caps instead of just one due to a computer glitch, each supposedly worth 1 million pesos. When Pepsi refused to pay the mistakenly announced prizes, chaos ensued.
Outcome & Impact
- 5 deaths in violent protests
- Over 1,000 lawsuits filed
- 22,000 formal complaints
- The market share for Pepsi plummeted
Key Lesson
A single technical error without verification systems can lead to tragedy and destroy decades of brand building.
Instagram Influencers
Rigged Giveaway Scandals
Multiple beauty and lifestyle influencers have been caught selecting friends, family, or brand partners as the supposed random winners. Notable cases include influencers who never actually gave away promised prizes or pre-selected winners before the contest ended.
Outcome & Impact
- FTC warnings and fines
- Permanent follower trust erosion
- Stricter platform guidelines
- Legal action from participants
Key Lesson
Social media transparency demands are higher than ever - audiences can and will investigate suspicious wins.
Oprah Winfrey Show
Pontiac Car Giveaway Tax Scandal
The famous moment on the Oprah show in 2004 when she gave everyone a car turned sour when 276 audience members discovered they owed up to $7,000 in taxes on their supposedly free Pontiac G6s. Many could not afford the tax bill on their prizes.
Outcome & Impact
- National media backlash
- Winners forced to sell cars or take loans
- Permanent association with hidden costs
- Changed how prizes are disclosed
Key Lesson
Even well-intentioned giveaways can backfire without complete transparency about all conditions and costs.
HQ Trivia
Rigged Quiz Payouts
The popular live trivia app was accused by users and former employees of rigging quizzes, manipulating who would win to increase engagement. Employees allegedly had advance access to questions and influenced outcomes.
Outcome & Impact
- Mass user exodus
- Legal threats and investigations
- Company shut down in 2020
- The reputations of the founders were destroyed
Key Lesson
Digital-first audiences are highly sophisticated at detecting manipulation - trust once lost is nearly impossible to regain.
Electronic Arts (EA)
FIFA Ultimate Team Card Scandal
An EA employee allegedly sold rare FIFA Ultimate Team cards directly to players for thousands of dollars, undermining the fairness of contests and pack openings that millions of players participated in.
Outcome & Impact
- Employee immediately terminated
- FBI investigation launched
- Class-action lawsuits filed
- Permanent community trust damage
Key Lesson
Gaming communities demand absolute fairness - any insider advantage destroys the integrity of the entire system.
Do not become the next cautionary tale
These companies learned the hard way that giveaway fraud destroys trust, invites legal action, and can even lead to violence. PickSafely ensures your giveaways are provably fair from day one.