Consumer Law Library

Bonus portable typewriter offer

Topics: FTC Act §5: unfair or deceptive actsAdvertising

76 F.T.C. 1117 · Oct. 29, 1969 · Digest No. 388

source volume section (76 F.T.C. 1117)

Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.

No. 388. Bonus" portable typewriter offer.

The Commission issued an advisory opinion relative to proposed advertising of "bonus" typewriters. The proposed advertisement would offer a portable typewriter as a "bonus " to any one accepted for enrol1ment in a correspondence course. Readers 1118 FEDERAL TRADE COMMISSIO:- DECISIONS were invited "to write for information " but the prerequisites to the receipt of the "bonus" typewriter were not disclosed. The Commission advised that it '" "''' is of the view that the advertisement in the circumstances described would be misleading and deceptive and in possible violation of Section 5 of the Federal Trade Commission Act in several respects. For one thing, the bonus" offer is to be a continuing offer, which means that the regular price for the training courSe of $595 includes the typewriter; the typewriter would not, therefore, be a "bonus." Also , the proposed advertisement does not make clear that what is being sold for a fee is a training course in motel management and that the so-called " bonus " typewriter is offered only in connection with such course.

Moreover , even were the typewriter to be given as a true bonus, as, for example , if a time-limited offer was made without a change in tuition, the proposed advertisement would still be deceptive and misleading because the terms and conditions for the receipt of the typewriter are not disclosed , including, it appears, an advance payment of $595 tuition for a motel training course.

Furthermore , the proposed advertisement is deceptive because, taken as a whole, it tends to convey the impression that service is not being sold but rather , that a gift is to be given to specially qualified persons who are willing to consider a career in motel management. (File No. 693 7147 Released October 29 1969)