“Free hosiery for life” offer to obtain sales representatives

No. 324. “Free hosiery for life” offer to obtain sales representatives. The Commission rendered an advisory opinion in regard to the propriety of advertising which offers information for ‘‘free hosiery for life’ in connection with the sale of hosiery. According to the proposed plan, one who responds to the advertisement will receive information offering the recipient a job selling hosiery, and for every certain number of hosiery which is sold the recipient will receive a free pair of hosiery. In the advisory. opinion which was rendered, the Commission said that the use of the word “free” under the above circumstances would be deceptive and therefore in violation of section 5 of the Federal Trade Commission Act, unless the initial advertisement and any subsequent promotional material contains a clear and conspicuous disclosure of all of the conditions or prerequisites to the receipt and retention of the free merchandise. (File No. 693 7049, released Feb. 27, 1969.)