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Marketing Scratch & Win

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MARKETING SCRATCH & WIN AGREEMENT

This Marketing Scratch & Win Agreement (the Agreement) is entered into as of Effective Date: by and between Brand/Client: and Agency/Promoter: .

Recitals

WHEREAS, Brand/Client seeks to conduct a scratch-and-win promotional campaign ("Campaign") to promote its products or services; and WHEREAS, Agency/Promoter has expertise in designing, administering and fulfilling promotional campaigns and agrees to perform the services under the terms set forth herein.

Campaign Details

Mechanics and Deliverables

The Campaign will operate as a scratch-and-win promotion whereby eligible participants will receive a scratch medium (digital or physical) that reveals a prize or no-prize outcome. Specific mechanics, including distribution method, validation and prize redemption processes, are described below.

Campaign Start Date:     Campaign End Date:

Prizes, Odds, and Winner Selection

Notification Period: Winners will be notified within days of selection. Claim window: days from notification.

Eligibility and Entry

  No purchase necessary alternative will be provided in compliance with applicable law.

Compensation & Payment

Usage Rights and IP

Compliance & Disclosures

Agency/Promoter represents and warrants that it will administer the Campaign in compliance with all applicable laws, rules and industry guidelines governing promotions, including clear and conspicuous consumer disclosures, truthful advertising, required disclaimer language, and recordkeeping.

FTC Disclosure Compliance: Agency certifies that all sponsored content and promotional communications will include required disclosures and that such disclosures will be clear, timely and conspicuous.
  Agency acknowledges and agrees to comply with disclosure requirements.

Exclusivity

During the Exclusivity Period defined below, Agency agrees not to promote or operate materially similar scratch-and-win promotions for direct competitors of Brand in the Territory.

Exclusivity Period (months):    Territory:

Termination

Either party may terminate this Agreement for convenience upon written notice to the other party. Termination for cause shall be permitted upon material breach that remains uncured for the Cure Period specified below.

Notice Period (days):    Cure Period (days):

Kill Fee: If Brand terminates without cause after Agency has commenced production, Brand will pay a kill fee equal to or reasonable documented costs incurred, whichever is greater.

Indemnity, Liability & Insurance

Each party shall indemnify and hold harmless the other party from third-party claims arising from its gross negligence, willful misconduct or breach of representations and warranties in connection with the Campaign. Liability for direct damages shall be limited to the total fees paid to Agency under this Agreement. Neither party shall be liable for consequential or punitive damages.

Privacy & Data Handling

Audit & Recordkeeping

Agency shall maintain accurate records of distribution, prize fulfillment and winner verification for the retention period specified above and shall permit Brand to audit such records upon reasonable prior notice during normal business hours.

Governing Law & Notices

This Agreement shall be governed by the laws of the jurisdiction indicated below without regard to conflict-of-law principles. Notices shall be given to the addresses below or such other addresses as either party may designate in writing.

Miscellaneous

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the Campaign and supersedes all prior understandings. Amendments must be in writing and signed by both parties.

Brand / Client (Printed Name):

By (Signature):

Date:

Agency / Promoter (Printed Name):

By (Signature):

Date:

Enter text✕

What the Marketing Scratch & Win Is and why it matters

A Marketing Scratch & Win is a promotional entry format used to distribute chance-based prize opportunities to customers and prospects. It combines an entry mechanism (digital or physical scratch card) with official rules, prize disclosures, and a process for verifying winners. For digital deployments, it often includes an online entry form, consent language, and recordkeeping to document eligibility and prize acceptance. Using a compliant eSignature platform such as signNow can help capture participant consent and maintain tamper-evident audit trails for regulatory review and tax reporting.

Why a clear Marketing Scratch & Win matters for compliance and recordkeeping

A well-drafted Scratch & Win protects the promoter by documenting entry rules, eligibility, prize delivery, and tax reporting responsibilities in a reproducible record.

Why a clear Marketing Scratch & Win matters for compliance and recordkeeping

Who typically creates and oversees Scratch & Win promotions

Different teams collaborate on Scratch & Win campaigns; responsibilities usually split between marketing, legal/compliance, and promotions operations.

  • Marketing teams at consumer brands managing campaign creative and distribution channels.
  • Legal and compliance groups drafting official rules and ensuring regulatory requirements are met.
  • Promotions or operations staff handling entry validation, prize fulfillment, and record retention.

Proper cross-functional ownership helps ensure the promotion runs smoothly, winners are validated correctly, and required records are retained for audits and tax reporting.

Step-by-step: creating and processing a Scratch & Win campaign

Follow these sequential steps to prepare the campaign, capture entries, and close prize awards with documented evidence.

  • 01
    Draft Rules: Write eligibility, prize details, and entry mechanics clearly.
  • 02
    Set Up Entry Form: Create a fillable form with required fields and consent text.
  • 03
    Distribute Cards: Publish digital links or distribute physical cards with codes.
  • 04
    Verify & Award: Validate winners, capture signed acceptance, and record fulfillment.

How digital Scratch & Win entry collection typically operates

A concise workflow from distribution to signed winner acceptance helps minimize disputes and keeps an audit trail for compliance and tax purposes.

  • Upload Creative: Add campaign assets and prize table to the platform.
  • Add Form Fields: Place name, contact, code, consent, and signature fields.
  • Share Link: Distribute via email, social, or point-of-sale channels.
  • Collect Signed Entry: Capture signature, timestamp, and audit trail for each winner.

Typical digital configuration settings for entry workflows

Use these configuration items to enforce authentication, consent capture, and automated notifications.

Field Configuration
Authentication Email verification or SMS OTP
Consent Capture Mandatory checkbox with visible rules
Winner Notification Automated email with signed receipt
Data Export CSV export of entries and audit metadata

Technical considerations for online Scratch & Win distribution

Choose platform features that support secure signatures, audit trails, and the file formats your campaign uses.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • Supported Formats: PDF, DOCX, HTML, Excel
  • Authentication Options: Email OTP, SMS code, KBA

Confirm the platform retains tamper-evident audit logs and supports export of signed PDFs for tax and audit records.

Essential components to include in a professional Scratch & Win package

A complete package combines clear official rules, a reliable entry interface, and administrative controls for verification, recordkeeping, and prize fulfillment.

Official Rules

Include eligibility, entry period, prize descriptions, odds, tie-break procedures, and dispute resolution language so participants understand the terms and organizers meet regulatory expectations.

Prize Table

List each prize, quantity, and retail value; provide any cash equivalents and indicate whether taxes will be withheld or whether winners receive tax forms.

Entry Mechanics

Describe how to enter (scratch code, URL, SMS), alternate no-purchase entry method if required, and instructions for code redemption to prevent confusion.

Winner Notification

Specify notification method, response deadline, and actions if a winner fails to respond; document each contact attempt in the audit trail.

Privacy Terms

Explain what personal data is collected, how it will be used, and link to privacy policy; for healthcare data, include HIPAA considerations if applicable.

Recordkeeping

Define how long entry and award records are retained and where they are stored to support audits, tax reporting, and potential regulatory inquiries.

Supporting materials and export options for campaign administration

Provide administrators and auditors with accessible exports, editable templates, and attachment lists for each winner.

Export Options

Offer signed PDF, CSV for entry data, and Excel exports for prize reconciliation to simplify reporting and accountant review.

Editable Templates

Maintain reusable templates for official rules, winner letters, and release forms to ensure consistent language across campaigns.

Attachment Lists

Attach proof of delivery, winner IDs (if required), and signed acceptance forms to each award record for compliance.

Printable Versions

Provide print-friendly rule sheets and winner certificates for in-person handover or retail POS distribution where needed.

Security and compliance controls to protect entries and winners

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest
Audit Trail: Tamper-evident timestamps and access logs
Access Controls: Role-based permissions and SSO support
Compliance: ESIGN, UETA, SOC 2 Type II
HIPAA Support: BAA available where required
File Integrity: Versioning and document hashes

Legal risks and regulatory penalties to be aware of

State Sweepstakes Laws: Registration and bonding may be required
Tax Reporting: 1099 reporting and withholding obligations
Consumer Disclosures: Failure to disclose terms can lead to fines
Privacy Violations: Improper data handling risks statutory penalties
Unlawful Consideration: Requiring purchase can trigger gambling rules
Recordkeeping Failures: Missing records increase audit risk

Common mistakes organizers make — and how they affect campaigns

  • Using vague prize descriptions that lead to disputes and refund requests.
  • Failing to provide a no-purchase entry alternative where required by state law.
  • Omitting clear winner notification deadlines, resulting in unclaimed prizes and operational delays.
  • Neglecting to capture signed acceptance and tax forms before releasing high-value prizes.

eSignature vendor comparison for managing Scratch & Win entry forms

A concise comparison of common vendor features and starting prices to inform platform selection for entry collection and record retention.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (paid tiers) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about digital Scratch & Win entries and signatures

Answers to common operational and compliance questions organizers encounter when running digital Scratch & Win promotions.


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