Full disclosure of facts necessary when seller of one product makes gift of another product to purchaser in…

No. 362. Full disclosure of facts necessary when seller of one product makes gift of another product to purchaser in exchange for names of prospective purchasers. In response to a request for an advisory opinion, the Commission advised a manufacturer under an order prohibiting it from representing, directly or indirectly, that its products can be had at no cost to the purchaser or that such products can be had in exchange for the names of a given number of prospective purchasers, unless a full and complete disclosure is made of the facts and circumstances surrounding the offer, that it considered the following to constitute suffcient disclosure: Purchaser to furnish , at time of purchase, the names and addresses of six prospective purchasers.

Prospects must reside in the sales area of manufacturer s distributor making the original sale. For voluntarily furnishing such names and addresses purchaser wi1 receive, without charge, another specifically designated product of the manufacturer. The additional product will be presented immediately upon completion by the purchaser of the names and addresses of the six prospective purchasers requested.

Any representation or arrangement not contained in this disclosure shall not be binding upon the manufacturer or its distributor. 1\0 purchaser is required to participate in the program. Participation is strictly voluntary on the part of the purchaser. (File No. C-514 Released August 14 1969)