[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR233.4]

[Page 159]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 233_GUIDES AGAINST DECEPTIVE PRICING--Table of Contents
 
Sec. 233.4  Bargain offers based upon the purchase of other merchandise.

    (a) Frequently, advertisers choose to offer bargains in the form of 
additional merchandise to be given a customer on the condition that he 
purchase a particular article at the price usually offered by the 
advertiser. The forms which such offers may take are numerous and 
varied, yet all have essentially the same purpose and effect. 
Representative of the language frequently employed in such offers are 
``Free,'' ``Buy One--Get One Free,'' ``2-For-1 Sale,'' ``Half Price 
Sale,'' ``1[cent] Sale,'' ``50% Off,'' etc. Literally, of course, the 
seller is not offering anything ``free'' (i.e., an unconditional gift), 
or \1/2\ free, or for only 1[cent], when he makes such an offer, since 
the purchaser is required to purchase an article in order to receive the 
``free'' or ``1[cent]'' item. It is important, therefore, that where 
such a form of offer is used, care be taken not to mislead the consumer.
    (b) Where the seller, in making such an offer, increases his regular 
price of the article required to be bought, or decreases the quantity 
and quality of that article, or otherwise attaches strings (other than 
the basic condition that the article be purchased in order for the 
purchaser to be entitled to the ``free'' or ``1[cent]'' additional 
merchandise) to the offer, the consumer may be deceived.
    (c) Accordingly, whenever a ``free,'' ``2-for-1,'' ``half price 
sale,'' ``1[cent] sale,'' ``50% off'' or similar type of offer is made, 
all the terms and conditions of the offer should be made clear at the 
outset. [Guide IV]