Understanding Freebies The Concept Of Free Products And Services In Consumer Marketing

The term "freebies" refers to products or services provided to consumers without charge. According to dictionary definitions, a freebie is "something given or received without charge" or "an article or service given free." The concept has been part of consumer marketing for decades, with origins dating back to at least 1942 when the term first appeared in "The American Thesaurus of Slang." This article explores the nature of freebies, their role in marketing strategies, and the legal considerations surrounding the use of the term.

Definition and Origins of Freebies

The term "freebie" has been consistently defined across multiple dictionaries as something provided without charge. The American Heritage College Dictionary defines it as "An article or service given free," while Webster's II New Riverside University Dictionary defines it as "Something given or received gratis." The Cambridge International Dictionary of English provides a more contemporary definition: "[S]omething which is given to you without you having to pay for it, esp. as a way of attracting your support for or interest in something."

Historically, the term has been in use since at least 1942, when it was included in "The American Thesaurus of Slag: A Complete Reference Book of Colloquial Speech." This longevity suggests that the concept of free items has been a part of consumer culture for many decades.

Freebies in Marketing Strategies

Businesses have utilized freebies as marketing tools for various purposes. One application is through customer incentive programs, where retailers offer free products or services to encourage purchases or reward loyalty. Retail Services Inc. (RSI), for example, provides customer management services to retailers that include identifying potential "incentive offers," which they describe as "freebies." When a customer makes a purchase from an RSI client, the company's system identifies an appropriate freebie offer that can be presented to the customer along with their purchase receipt.

Another marketing application of freebies is through publications that provide information about available free offers. Freebies Publishing, for instance, published "Freebies Magazine" from 1979 to March 2001, which contained information about free mail-order offerings. After ceasing print publication, the company shifted its focus to offering the same information online through its website, targeting Internet users looking for mail-order material.

Brand Promotions and Freebie Points

Some businesses implement point-based systems where customers can earn "freebie points" that can be redeemed for products or services without additional cost. An example is Blockbuster's promotional scheme, where customers could earn "Freebie Points" to cash in for rent-free viewing. In 1998, RSI formed Freebie, Inc. specifically to service this Blockbuster account, indicating the significance of such promotional programs in retail marketing.

Legal Considerations: The Genericness of "Freebies"

The term "freebies" has been the subject of legal debate regarding whether it can function as a trademark. According to trademark law, a term that is generic for the goods or services it identifies cannot be registered as a trademark. The distinction between generic terms and protectable trademarks is crucial in this context.

In the legal case between Retail Services Inc. and Freebies Publishing, the court examined whether "freebies" is a generic term that merely describes the nature of the goods or services (in this case, information about free offers) rather than indicating the source of those goods or services. The court considered dictionary definitions that uniformly defined "freebie" as a slang term meaning something given or received without charge.

The court also noted that evidence of genericness may come from various sources, including purchaser testimony, consumer surveys, dictionary definitions, trade journals, and competitor usage. In this case, the dictionary definitions played a significant role in the court's determination.

The Trademark Status of "Freebies"

The case between RSI and Freebies Publishing centered on whether the term "freebies" could be protected as a trademark. Freebies Publishing had registered the FREEBIES mark for use in connection with "periodicals; namely, magazines and newspapers with information about mail order offerings" in 1993.

However, RSI argued that the term "freebies" was generic and therefore not entitled to trademark protection. The district court ultimately agreed with this assessment, concluding that "freebies" is generic and not registrable as a federal trademark. This ruling meant that RSI could continue using the term in connection with its business without infringing on any trademark rights.

The Evolution of Freebies Distribution

The distribution of freebies has evolved significantly over time. Initially, free offers were primarily promoted through printed publications like Freebies Magazine. These magazines provided consumers with information about various free samples and promotional offers available through mail order.

With the advent of the internet, the distribution of freebie information shifted from print to digital platforms. Freebies Publishing, for example, transitioned from its printed magazine to offering the same information online under the domain name freebies.com after ceasing publication in 2001. This digital shift allowed for broader reach and more immediate access to free offer information for consumers.

Consumer Perspective on Freebies

From a consumer perspective, freebies represent an opportunity to try products without financial commitment. They serve as a risk-free way to experience new items, which can be particularly valuable for products that consumers might be hesitant to purchase without first trying. Free samples allow consumers to test products such as cosmetics, food items, or household goods before committing to a full-size purchase.

For businesses, offering freebies can be an effective marketing strategy to attract new customers, encourage trial of new products, and build brand loyalty. The perceived value of free items can also influence consumer purchasing decisions, with many consumers being more likely to purchase a product after having received a free sample.

Types of Freebies

While the source material doesn't provide an exhaustive list, freebies can take various forms across different product categories:

• Beauty products: Free samples of cosmetics, skincare items, or hair care products
• Food and beverages: Free samples of food products or drink items
• Household goods: Free samples of cleaning products or other household items
• Media: Free issues of publications containing information about free offers
• Services: Free trials of services or complimentary services with purchase

The legal case between RSI and Freebies Publishing specifically focused on the use of the term "freebies" in connection with publications providing information about free mail-order offerings, highlighting one specific application of the concept.

Conclusion

The term "freebies" refers to products or services provided without charge and has been part of consumer culture since at least the 1940s. Businesses utilize freebies as marketing tools to attract customers, encourage trial of products, and build brand loyalty. The distribution of freebie information has evolved from print publications to digital platforms, expanding consumer access to these offers.

The legal case between Retail Services Inc. and Freebies Publishing established that "freebies" is a generic term that describes the nature of products or services rather than indicating their source. This determination means that the term remains available for public use and cannot be exclusively claimed as a trademark.

For consumers, freebies represent valuable opportunities to try products without financial commitment, while for businesses, they serve as effective marketing tools across various product categories and industries.

Sources

1. Retail Services Inc. v. Freebies Publishing, 364 F.3d 535 (4th Cir. 2004)