The Free Means Free Act aims to combat misleading advertising practices related to products advertised as "free" by requiring clear disclosure of the ultimate costs associated with such products. The bill defines key terms such as "contracted service," "product," "provider," and "ultimate cost," which encompasses all fees related to the product or service, including shipping, activation, cancellation, return, or restocking fees. It establishes that it is unlawful for any person to sell or advertise a product as free if they impose any fees that would negate the "free" claim, such as return or restocking fees, cancellation fees that incorporate the product's value, or hidden costs within regular billing for contracted services.

Additionally, the bill mandates that sellers must clearly and conspicuously disclose the ultimate cost of any product at the point of sale or contract agreement. This includes indicating whether the product is offered for free or at a reduced rate, the retail value, any cancellation fees, and any return or restocking fees. Violations of this act are classified as unlawful practices under the consumer fraud act, which can result in significant monetary penalties, cease and desist orders, and potential punitive damages for affected consumers.