12.2.4.14

“Free gifts”:

1. A. It is an unfair or deceptive trade practice for a dealer to represent that another product or service is being offered “free” or at no cost with the sale if a product or service usually is sold at a price arrived at through bargaining, rather than at a fixed price. FTC Guidelines at 16 CFR 251.1(g).

2. B. It is an unfair or deceptive trade practice for a dealer to use the word “free” or words of like meaning and import when describing a gift or other item to be given to a customer who purchases a product or service if the selling price of the product or service is increased as a result of the “free” item or if the product or service can be purchased for a lesser price without the “free” item.

   [5-1-98; Recompiled 10/15/01]