Louisiana Administrative Code
Title 16 - COMMUNITY AFFAIRS
Part III - Consumer Protection
Chapter 3 - Deceptive Pricing
Section III-315 - Bargain Offers Based on the Purchase of Other Merchandise and Use of the Word "Free"

Universal Citation: LA Admin Code III-315

Current through Register Vol. 50, No. 9, September 20, 2024

A. It is a deceptive act or practice to use the word free, or words of similar meaning, or to represent bargain offers, including "Buy One-Get One Free", merchandise to be given to a customer who purchases other merchandise, if the seller recovers, in whole or in part, the cost of the free or bargain merchandise by marking up the price of the item which must be purchased, by substituting an inferior item or service, or otherwise. It is a deceptive act or practice to represent that other merchandise is being offered free or at a bargain price with the sale if the advertised merchandise can be purchased from the advertiser at a lesser price without the free or bargain merchandise, particularly if the merchandise is usually sold at a price arrived at through bargaining.

B. So-called free merchandise offers are another problem area which these rules address. If you advertise an item as free, it must be available to the consumer at no extra cost, whether that cost is in dollars or in a reduction in quality or service.

1. Moreover, the word "free" loses its meaning in cases where the selling price of the product is usually negotiated. This is because there is no way of knowing whether the seller would have negotiated a different price if the "free" item wasn't included.

2. The language of this rule is drawn from the Federal Trade Commission's "Guide concerning the use of the word 'free' and similar representations."

Example:

Buy One Suit-Get One Free $399

3. Whether this ad is deceptive depends on the several underlying facts. The ad is deceptive if:
a. the regular selling price of a single suit is less than $399; or

b. the store regularly offers a free shirt and tie or free alterations with each suit purchased and the buy one-get one free offer doesn't include the extra merchandise or service; or

c. the consumer can buy the suit for $299 if he or she gives up the "free" suit; or

d. these suits regularly sell for as low as $299 or for as much as $499, depending on the bargaining ability of the customer.

AUTHORITY NOTE: Promulgated in accordance with R.S. 51.1 et seq.

Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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