Q. I run a retail business and am planning a "buy one get one free" (BOGOF) promotion. I have read the European Regulations on sales promotion and these appear to outlaw such offers. Is this right?
A. No it is not. Although the regulations are not as clear as they could be (and if you are having trouble sleeping reader I can recommend them to you) their purpose is to protect consumers from promotions which are misleading, not to outlaw practices that are normal and understood in the market and which provide a benefit to the consumer. The regulations provide that you cannot claim that an offer is "free" if you have:
- imposed additional charges that would not normally apply, or
- Inflated the price of any product that the consumer must buy, or any incidental charges that the consumer must pay to get the free offer, or
- Reduced the price to consumers who do not take up the free offer, or
- if the consumer has to pay anything other than the unavoidable cost of responding to the promotion and collecting or paying for delivery of the item.
Germany interpreted the last rule above as banning BOGOF offers and promptly outlawed them for a period. However, the UK common sense view is that BOGOF offers are permitted and so, at least for now, you are free to run your campaign.
