Guide Against Deceptive Use In The Word "Free" In Connection With The Sale Of Photographic Film And Film Processing Service
16 CFR Part 242 · Guides · in the Code of Federal Regulations 1994-1994 (1 annual editions)
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Latest edition: Library of Congress, 1994 CFR · Earliest edition: 1994 CFR
Text (1994 edition, OCR)
§ 241.16
is unsuitable for the purpose represented or
implied in the offer;
(e) The failure, in the event of sale of the
product offered, to deliver such product to
the buyer within a reasonable time there-
after;
(f) The failure to have available a quantity
of the advertised product at the advertised
price sufficient to meet reasonably antici-
pated demands.
It is not necessary that each act or prac-
tice set forth above be present in order to es-
tablish that a particular offer does not com-
ply with this section.
NOTE: 2. The Commission’s Guides Against
Bait Advertising furnish additional guidance
respecting bait advertising. See 16 CFR Part
288 for the Guides Against Bait Advertising.
[Guide 15]
$241.16 Guarantees, warranties, etc.
(a) An industry member should not
represent in advertising or otherwise
that a product is guaranteed without
clear and conspicuous disclosure of:
(1) The nature and extent of the guar-
antee; and
(2) Any material conditions or limi-
tations in the guarantee which are im-
posed by the guarantor; and
(3) The manner in which the guaran-
tor will perform thereunder; and
(4) The identity of the guarantor.
(The necessary disclosure requires that
any guarantee made by the dealer or
vendor which is not backed up by the
manufacturer must make it clear that
the guarantee is offered by the dealer
or vendor only.)
(b) A seller or manufacturer should
not advertise or represent that a prod-
uct is guaranteed when he cannot or
does not promptly and scrupulously
fulfill his obligations under the guaran-
tee.
(c) A specific example of refusal to
perform obligations under the guaran-
tee would arise in connection with the
use of the phrase ‘‘Satisfaction or your
money back’’ if the guarantor does not
promptly make a full refund of the pur-
chase price upon request, irrespective
of the reason for such a request.
(d) This section has application not
only to ‘‘guarantees’’ but also to ‘‘war-
ranties,’’ to purported ‘‘guarantees”’
and ‘“‘warranties,’’ and to any promise
or representation in the nature of a
“guarantee’’ or ‘‘warranty.”’
48
16 CER Ch. | (1-1-94 Edition)
Nore: The Commission’s Guides Against
Deceptive Advertising of Guarantees furnish
additional guidance respecting guarantee
representations. See 16 CFR Part 239 for
Guides Against Deceptive Advertising of
Guarantees.
{Guide 16)
$241.17 Deceptive pricing.
An industry member should not rep-
resent directly or indirectly in adver-
tising or otherwise that an industry
product may be purchased for a speci-
fied price, or at a saving, or at a re-
duced price, when such is not the fact;
or otherwise deceive purchasers or pro-
spective purchasers with respect to the
price of any product offered for sale; or
furnish any means or instrumentality
by which others engaged in the sale of
industry products may make any such
representation.
NOTE: The Commission’s Guides Against
Deceptive Pricing furnish additional guid-
ance respecting price savings representa-
tions. See 16 CFR Part 233 for the Guides
Against Deceptive Pricing.
(Guide 17]
PART 242—GUIDE AGAINST DECEP-
TIVE USE OF THE WORD “FREE” IN
CONNECTION WITH THE SALE OF
PHOTOGRAPHIC FILM AND FILM
PROCESSING SERVICE
§242.1 The guide.
(a) A common form of bargain adver-
tising used to promote the sale of pho-
tographic film processing service is the
offer of a roll of film, represented as
being free to consumers who purchase a
particular advertiser’s service.
(b) Film processors should avoid rep-
resenting film as ‘free’? when their
quoted price for processing is not their
regular price for such service, or, when
the price charged for processing in con-
nection with the ‘‘free’’ film represen-
tation is in excess of the price regu-
larly charged by them for processing
alone. A regular price is the price at
which an article or service is openly
and actively sold by the advertiser to
the public on a regular basis for a rea-
sonably substantial period of time in
the recent and regular course of busi-
ness. A price which (1) is not the adver-
tiser’s actual selling price, (2) is a price
Federal Trade Commission
which was not used in the recent past
but at some remote period in the past,
or (3) is a price which has been used
only for a short period of time, is not a
regular price. Consequently, use of any
price or amount, other than the adver-
tiser’s own bona fide regular price, in
connection with a ‘‘free’”’ film represen-
tation is deceptive.
(c) ‘‘Free”’ film offers are understood
by consumers to mean that the price
charged by the advertiser is for proc-
essing alone and has not been raised to
include any payment for the film. In
other words, they understand that the
film, in fact, is a gift to the consumer
given by the advertiser in return for
the processing business he receives. In
such circumstances, if any portion of
the represented price charged for proc-
essing includes any payment for the
film to the processor, the ‘“‘free’’ film
offer is deceptive and consumers are
misled.
(d) Where a processor has not estab-
lished a regular price for processing
service by itself, he has no basis, ex-
cept in the case of introductory offers,
upon which to make a ‘“‘free’’ film rep-
resentation. Likewise, a processor may
not justify ‘‘free’’ film offers, whether
advertised with or without qualifica-
tion, on the ground that his price for
processing and film is equal to or less
than the price charged by local devel-
opers for processing alone, in a given
trade area. Only the processor’s own
regular processing price may be used as
a basis for the ‘‘free”’ film representa-
tion.
(e) Continuous free film offers or the
repetition of such offers with great fre-
quency should be avoided. Continuous
or frequent offers of free film made in
connection with the sale of processing
service are false and misleading since
the processor’s price for his service
alone will, by lapse of time, become his
regular price for processing service and
film in combination. The film, in such
circumstances, would therefore no
longer be ‘‘free”’.
(f) Introductory (temporary) offers of
“free”? film should not be advertised
where processors do not, in good faith,
expect to discontinue the offer after a
limited time and commence selling
processing service separately at the
same price at which the offer of such
49
§ 242.1
service, together with the ‘“‘free”’ film,
was made.
(g) The guide does not preclude the
use of nondeceptive “combination” of-
fers in which film and processing are
offered for sale as a single unit at a sin-
gle stated price, and where no represen-
tation is made that the price is to be
paid for one item and the other is
“free”. Similarly, film processors are
not precluded from setting a price for
processing which also includes furnish-
ing the purchaser with a replacement
roll of film at one inclusive price—
again, where no representation is made
that the latter is ‘‘free’’.
NOTE: On December 1, 1953, the Commission
approved a trade practice rule on use of the
word ‘“‘Free’’. The provisions of the guide set
forth above are advisory in nature and are
not to be construed as replacing or modify-
ing any of the provisions of the aforemen-
tioned trade practice rule.
(38 Stat. 717, as amended; 15 U.S.C. 41-58)
(83 FR 8336, June 5, 1968)
PART 243—GUIDES FOR THE DECO-
RATIVE WALL PANELING INDUS-
Sec.
243.0
243.1
243.2
Definitions.
Avoiding deception generally.
Describing wood and wood imitations.
243.3 Deceptive use of wood names.
243.4 Imitations of materials other than
wood.
243.5 Misleading illustrations.
243.6 Deceptive use of trade or corporate
names, coined names, trademarks, etc.
243.7 Passing off through imitation or sim-
ulation of trademarks, trade names, etc. °
243.8 Disclosure of “seconds”, ‘“‘rejected’’, or
“defective” products, etc.
243.9 Representations concerning washabil-
ity, cleanability, etc.
243.10 Size markings and designations.
243.11 Removal, obliteration, or alteration
of marks or labels.
243.12 Misrepresenting products as conform-
ing to standard or specification.
243.18 Deception as to origin.
243.14 Other parts in this Title 16 applicable
to this industry.
AUTHORITY: 38 Stat. 717, as amended; 15
U.S.C. 41-58.
SOURCE: 36 FR 23796, Dec. 15, 1971, unless
otherwise noted.