The use of the statement 'free' in discount promotions is risky. The supermarket C1000 was recently faced with that when the Dutch Advertising Code Committee (RCC) judged that a C1000 advertising was misleading.
By shopping at C1000 customers could save for 10 Euros of free fuel at Total. According to the RCC that was misleading. The 10 Euro free fuel did only apply by a minimum purchase of 20 liters of fuel. Although this was clearly stated in the terms and conditions it did not make any difference.
Based on the Dutch Advertising Code it is misleading to describe a product as ‘free’ if the consumer has to pay anything other than the unavoidable cost of responding to the commercial practice and collecting or paying for delivery of the item.
In this case the RCC judged that it is established that the 10 Euro free fuel only applies if at least 20 liters of fuel is purchased. Given the fuel prices it is not possible to purchase 20 liters fuel for € 10. This means that consumers should always pay an extra amount. Under these circumstances the RCC judged that C1000 should have called it a discount of € 10 and the statement “10 Euro of free fuel” is misleading.
It is questionable whether the RCC would have arrived to the same opinion if C1000 had clearly mentioned in the advertisement that at least 20 liters of fuel should be purchased. Would that be misleading? Anyhow, do not call a discount ‘free’ if it is not clear for the consumer that he has to pay additional costs to take up an offer.
Kim Braber, advertising law attorney
Read the decision here
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The use of the statement 'free' in discount promotions is risky. The supermarket C1000 was recently faced with that when the Dutch Advertising Code Committee (RCC) judged that a C1000 advertising was misleading.
By shopping at C1000 customers could save for 10 Euros of free fuel at Total. According to the RCC that was misleading. The 10 Euro free fuel did only apply by a minimum purchase of 20 liters of fuel. Although this was clearly stated in the terms and conditions it did not make any difference.
Based on the Dutch Advertising Code it is misleading to describe a product as ‘free’ if the consumer has to pay anything other than the unavoidable cost of responding to the commercial practice and collecting or paying for delivery of the item.
In this case the RCC judged that it is established that the 10 Euro free fuel only applies if at least 20 liters of fuel is purchased. Given the fuel prices it is not possible to purchase 20 liters fuel for € 10. This means that consumers should always pay an extra amount. Under these circumstances the RCC judged that C1000 should have called it a discount of € 10 and the statement “10 Euro of free fuel” is misleading.
It is questionable whether the RCC would have arrived to the same opinion if C1000 had clearly mentioned in the advertisement that at least 20 liters of fuel should be purchased. Would that be misleading? Anyhow, do not call a discount ‘free’ if it is not clear for the consumer that he has to pay additional costs to take up an offer.
Kim Braber, advertising law attorney
Read the decision here