Do you make any "free" or similar offers on your Web site, such as "gift," "bonus" or other words or terms which tend to convey the impression to consumers that a service is "free"? If so, consult the following sampling of important FTC regulations to see whether your site is in compliance.
Free Trial Offers
Does your site offer a free trial membership whereby consumers must cancel the membership within the trial period to avoid being charged? If so, recent FTC enforcement activity against AOL, CompuServe and Prodigy requires that your site must direct consumers to a location where the disclosures regarding consumers obligations will appear. (e.g., "For conditions and membership details, see registration process.") This disclosure must be unavoidable as well as big enough and in a shade whereby average consumers will be able to notice, read and understand it.
In addition, during the "final registration process," your site should disclose the terms of all mandatory financial obligations consumers will incur as a result of using the ISPs' services, including: (1) the financial terms of the offer, including that consumers must affirmatively cancel to avoid incurring obligations; (2) any mandatory membership fees, such as monthly or hourly usage fees; and (3) the manner in which those fees are calculated. Again, this disclosure must be unavoidable as well as big enough and in a shade whereby average consumers will be able to notice, read and understand it.
Disclosure of Terms and Conditions
Your site is at risk of FTC action unless all of the terms, conditions and obligations involved in the "free" offer (i.e. , "free upon purchase of another membership") appear at the outset of the offer and in close conjunction with the offer of "free" service. Disclosures in footnotes, small-print supers, on pages linked to the "free" offer, at the bottom of long Web pages (and below the location where consumers may make a purchase) and in colors which do not contrast well against the background all risk government scrutiny.
Frequency of Offers
A single service should not be advertised with a "free" offer (such as a free membership) for more than 6 months in any 12-month period. At least 30 days should elapse before another such offer is promoted, and no more than three such offers should be made in any 12-month period.