§ 5-06 The Word "Free" and Similar Representations.
RCNY § 5-06
(a)Scope. This section governs the use of the words "free," "gift," "given without charge," "bonus," "1¢ additional," and any other terms which imply that an item, as defined in 6 RCNY § 5-01, is free or offered at a nominal cost in the sale or offering for sale of any consumer goods or services. It governs signs inside stores, storefront advertising, handbills and all other types of written advertisement, but not advertising on packages placed thereon by a person or entity other than the retailer. In this section, the word "free" refers to any word or phrase of similar meaning. A "free offer" is an offer involving the use of any such word or phrase.
(b)Disclosure of conditions on free offers. A seller who imposes a condition on a free offer must describe the condition clearly and conspicuously. The description of every condition on a free offer must be placed near the word "free." An asterisk or other symbol near the word "free," which refers the customer to a footnote containing conditions, does not satisfy this section. This condition must be in print at least half as large as the print used for the word "free." (c) Free offers conditioned upon another purchase.
(1)The "regular price" is the price at which an item has been actively and openly sold by the seller for a substantial period of time in the recent past.
(2)A seller who makes a free offer contingent upon another purchase may not: (i) charge more than the regular price for the item; or (ii) reduce the item's quantity or quality; or (iii) continuously make such offer or repeat it so frequently that the two items are being sold in combination at one price; or (iv) make such offer in connection with the sale of an item that is usually sold at a price negotiated with consumers.
(d)Combination offers. This section permits non-deceptive "combination" offers, in which two or more items (for example, toothpaste and a toothbrush) are offered for sale as a single unit at a single stated price.
