Oregon Administrative Rule 137-020-0015 follows the Federal Trade Commission’s ‘Free Rule’ It is the intention of the Department of Justice to prohibit the practice of advertising or offering something as “free” when the cost of the “free” item can be passed on to the consumer.
A person making or advertising a “free” offer in conjunction with the purchase or lease or rental of real estate, goods or services would be violating the rule if: • the free item(s) ( free rent for a month) would be part of normal negotiations or bargaining, unless the “free” item(s) is offered by a manufacturer or another party that is not the seller, and there is no direct cost to the seller;
OFFERING ONE MONTH FREE RENT IS AN EXAMPLE..
AS RENT COULD OR WOULD BE PART OF THE NORMAL NEGOTIATIONS OR BARGAINING.
• the item being offered for sale or lease can be purchased or leased for a lessor price without the “free” item; ( free rent obviously costs the owner, so rents that were less without the ‘free’ offer may be considered.
• the item being offered for sale or lease is priced higher than the “regular price.” Violation of the rule is a violation of the Oregon Unlawful Trade Practices Act.
A civil penalty per offense and other sanctions can be imposed for willful violations of the rule.