16 CFR § 240.7 - Services or facilities.

---
identifier: "/us/cfr/t16/s240.7"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "16 CFR § 240.7 - Services or facilities."
title_number: 16
title_name: "Commercial Practices"
section_number: "240.7"
section_name: "Services or facilities."
chapter_name: "FEDERAL TRADE COMMISSION"
subchapter_number: "B"
subchapter_name: "GUIDES AND TRADE PRACTICE RULES"
part_number: "240"
part_name: "GUIDES FOR ADVERTISING ALLOWANCES AND OTHER MERCHANDISING PAYMENTS AND SERVICES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 5, 6, 38 Stat. 719, as amended, 721; 15 U.S.C. 45, 46; 49 Stat. 1526; 15 U.S.C. 13, as amended."
regulatory_source: "79 FR 58252, Sept. 29, 2014, unless otherwise noted."
cfr_part: "240"
---


# 240.7 Services or facilities.

The terms “services” and “facilities” have not been exactly defined by the statute or in decisions. One requirement, however, is that the services or facilities be used primarily to promote the resale of the seller's product by the customer. Services or facilities that relate primarily to the original sale are covered by section 2(a). The following list provides some examples—the list is not exhaustive—of promotional services and facilities covered by sections 2(d) and (e):

Cooperative advertising;

Handbills;

Demonstrators and demonstrations;

Catalogues;

Cabinets;

Displays;

Prizes or merchandise for conducting promotional contests;

Special packaging, or package sizes; and

Online advertising.