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When Advertisers Use the Term Free in an Ad, the FTC

Question 38

Multiple Choice

When advertisers use the term free in an ad, the FTC holds them to which of the following standards?


A) A merchant has the right to recoup any cost associated with the offer through forcing the purchase of another item.
B) Any disclosure about the offer price must be conspicuously made in close conjunction with the offer.
C) Printing the details in a fine print footnote satisfies disclosure.
D) Two-for-one offers are exempt from these rules as they are not offering anything for free, only half-price.
E) A "two fer" deal means the first item can be sold at the highest price offered in the past 30 days.

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