Guide Against Deceptive Use Of The Word "Free" In The Connection With The Sale Of Photographic Film And Film Processing Service
16 CFR Part 242 · Guides · in the Code of Federal Regulations 1969-1995 (24 annual editions)
Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.
Latest edition: Library of Congress, 1995 CFR · Earliest edition: 1969 CFR
Text (1995 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 238 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 “vuarantee” or “warranty.” 46 16 CFR Ch. | (1-1-95 Edition) NOTE: 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 @ 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 47 § 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. 41-68) [33 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. 23.8 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. 243.138 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.