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Can I offer a free trial for my product or service in Kentucky? What are the requirements?
Offering Free Trials in Kentucky
Kentucky law does not have specific regulations regarding offering free trials for products or services. However, businesses should be aware of general consumer protection laws that apply to all sales and marketing practices.
Under Kentucky law, businesses are prohibited from engaging in deceptive or unfair trade practices, including false advertising, bait-and-switch tactics, and other forms of fraud [1.2]([2.2]:). Additionally, businesses must comply with federal laws such as the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices in commerce [2.2].
To ensure compliance with these laws, businesses should clearly disclose any terms and conditions associated with free trials, including the length of the trial period, any fees that will be charged after the trial period ends, and how customers can cancel the trial or subscription [2.2]. Businesses should also ensure that any advertising or marketing materials accurately represent the product or service being offered.
Kentucky Product Development Initiative
If you are participating in the Kentucky Product Development Initiative, you must comply with any incentive agreements and reporting requirements deemed necessary by the cabinet to verify that the awarded grant goes toward an eligible use [1.2]([2.2]:).
Conclusion
While Kentucky does not have specific regulations regarding free trials, businesses should be aware of general consumer protection laws that apply to all sales and marketing practices. To ensure compliance, businesses should clearly disclose any terms and conditions associated with free trials and accurately represent the product or service being offered. If you are participating in the Kentucky Product Development Initiative, you must comply with any incentive agreements and reporting requirements deemed necessary by the cabinet to verify that the awarded grant goes toward an eligible use.
Source(s):
- [1.2] Grant application – Compliance.
- [2.2] Section 4.
Jurisdiction
Kentucky