Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
The Copy Advice team is often asked what promoters can charge for when describing a promotional good as “free”. In short, to legitimately describe a product as “free”, promoters may charge only for the minimum, unavoidable cost of responding to the promotion, the true cost of freight or delivery or the cost of any travel involved if consumers collect the offer (Rule 3.23). In other words, promoters can charge for the actual, uninflated cost of postage.
In January 2009, the ASA upheld a complaint about a standard delivery charge of £3.95. It reminded the advertiser that an offer should be described as free only if consumers paid no more than the true cost of freight or delivery, such as the public rate of postage (Direct Home Shopping Brands Ltd, 28 January 2009).
If they want to describe an offer as free, promoters should not charge for packing, packaging, handling, administration, insurance, disbursement or other charges. Some promoters have argued that they should be able to pass on essential packaging costs to the consumer but the ASA is likely to take a dim view of consumers paying, directly or indirectly (by, for example, sending in a Jiffy bag), for packaging.
See ‘Sales Promotions: Free’.
Last modified : 28 June 2010