Quote:
Originally Posted by bobarian
FTC GUIDE CONCERNING USE OF THE WORD ``FREE''
AND SIMILAR REPRESENTATIONS
§251.1 The guide.
(a) General. (1) The offer of ``Free'' merchandise or service is a promotional device frequently used to attract customers. Providing such merchandise or service with the purchase of some other article or service has often been found to be a useful and valuable marketing tool.
(2) Because the purchasing public continually searches for the best buy, and regards the offer of ``Free'' merchandise or service to be a special bargain, all such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived.
Click on this link if you want further clarification. http://www.ftc.gov/bcp/guides/free.htm
Camacho's use and the timeshare example both fall under the FTC's guidelines for the usage of the term "Free" 
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I've even seen legal actions arising out of a marketer's failure to comply with the FTC's Mail Order Rule/ 30-day Rule (even for "free" items). See
http://www.ftc.gov/bcp/edu/pubs/business/adv/bus02.shtm for more legal fun. Bottom line is that marketers of "free" items are still legally responsible to consumers for the delivery of the "free" items within the terms and conditions of their promotion (of course there are plenty of exceptions, like for example a consumer not meeting all of the terms and conditions of the promotions, etc.).