- In this report
- Overview
The word 'free' means ...
This article appeared in 
It's one of the ironies of marketing that companies use "free" to get people to pay. But the government says freebies should obey certain guidelines.
According to the Federal Trade Commission, details of free offers must be clearly and conspicuously disclosed, and a company can't raise the regular price of an item to recover the cost of a freebie. The FTC also says that deceptive offers of "free" merchandise can't be corrected by substituting similar words such as "gift" or "bonus."
Companies that flout the guidelines face punishment. In 2008, for example, the FTC announced a settlement with California-based Member Source Media, which offered "free" products but failed to disclose that consumers also had to participate in third-party promotions that required them to buy products, subscribe to satellite TV service, or apply for credit cards. The settlement required the company to pay a $200,000 civil penalty and to refrain from such behavior.
What you can do
Study any "free" offer before signing up. If you've been misled, contact the FTC at www.ftc.gov.
