Defined as free or significantly discounted items offered in connection with the purchase of another item. Premiums are products.
The Federal Trade Commission regulates premiums.
The Consumer Products Safety Act may also govern premiums, especially if targeted to children.
The premium should be age appropriate and include age disclosures. Certain toys are prohibited.
Avoid toys that may be hazards.
State laws should be checked as they have different requirements.
The Better Business Bureau has guidelines with regard to premiums:
Specific guidelines for premiums offered to children on the Internet.
Specific guidelines relating to language used in premium offers directed to children.
The Better Business Bureau’s Web site can be accessed at http://www.bbb.org.
Major Broadcast networks also have guidelines relating to premiums.
Premium offers should include same language as suggested for coupons and rebates, where applicable. Also include:
Specifics on shipping and handling costs,
Statement such as “Sponsor reserves the right to substitute premium of equal value,”
Statement such as “Good only while supplies last,”
Products must be shipped within time period designated in premium offer. Under the FTC’s Mail Order Rule, if no time period is stated, shipments must be made within 30 days of order being placed, or a notice must be sent offering an opportunity to cancel and receive a refund.
