When is a free DVD not a free DVD?

I was on a web site today that offered a free DVD.  It was another one of those "How I got rich on the Internet" type of offers that also gives you a free consult (to get you to sign up for their consultation services) and a month's free membership along with the DVD.  Being interested in the different methods people use, I went ahead and read the sales letter and signed up for it.  I didn't see a charge for shipping/handling and wondered what the charges would be.  I searched for mention of that all through the letter and found nothing.

A little while later, I saw a receipt in my inbox from the company - with charges of $7.95 for shipping!  How did I go from zero to $7.95 without my even knowing?

Shipping and handling usually come to $5.97 on similar offers, although I have seen it as low as $3.97, but they usually tell you up front.  In this case, to complete your order, you had to enter your credit card details.  That was not surprising, as one of the bonuses was one free month in the membership site, a charge that becomes recurring should you wish to continue.  The box that showed the total had a "0" in it, so I wondered if and when the shipping would show up. 

Now I don't object to paying for shipping. It's only fair.  But I do feel that all charges need to be disclosed before the buyer purchases.  When they are not, I can only compare this to the use of fine print in various unethical business practices.  Only this is worse because with fine print, it's actually printed on the contract, whereas this website didn't even have that much.

The other thing that bothers me about this is that it doesn't cost  $7.97 to ship a DVD anywhere in the United States.  It costs less than $2.00.  So where is the rest of the money going?

To the fulfillment company and to the costs of producing the DVD.  Costs for production depend on how many DVDs are produced and where they are pressed, and fulfillment company charges vary.  But at $7.97 there will still be money left over.  There could easily be two to three dollars left over for pure profit.

But wait, they aren't selling the DVD, they said they are giving it away for free. 

And that's precisely what's wrong here.  They say it's free, but structure the offer for profit.  I have no objection to them covering their costs, but I have a huge objection to them not stating what the costs are going to be up front.  That amounts to consumer fraud.  And there's too much of that around.

I'm calling the company tomorrow and canceling.  I think I'll file a complaint with the proper authorities as well.