REGULATION OF BUSINESS-FEDERAL TRADE COMMISSION ACT-LEGALITY OF OFFERS OF ''FREE GOODS" UPON AGREEMENT TO PURCHASE OTHER MERCHANDISE

On June 30, 1948 the Federal Trade Commission issued a complaint against Walter J. Black, Inc., a corporation doing business as the Classics Club and the Detective Book Club. The Commission charged that use by the respondent of the word "free" in its advertising was false, misleading, and deceptive. The alleged deception consisted in the fact that in order to obtain the books designated as "free" the prospective purchaser was required to join respondent's club and thereby obligated himself to purchase at least four books a year from the respondent. The hearing examiner in his initial decision found that respondent's use of the word "free" was in fact misleading and deceptive.

Respondent appealed to the Commission. Held, Commissioner Mead dissenting, complaint dismissed. Walter J. Black, Inc., F.T.C. Dkt. 5571 (1953).