Free items are promotional devices used to attract customers. When a product has a free offer, the price of the pruchased product must not be increased from its regular price. Besides that, if a product is “free” or offered at a lower cost along with the purchase of another item, the advertisement must clearly disclose all terms and conditions of the promotion. Important information like terms affecting the offer’s cost must be placed near the advertised price.
Advertisements promoting rebates should state the before-rebate price and the amoung of the rebate. This way, consumers have the information they need to make comparisons. Rebate ads should also disclose other conditions and terms including additional fees and when consumers should expect to receive the rebate.
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