Free Pepsi in Rhode Island

Rhode Island's new law on rebates (which we reported on last month) has resulted in stores being forced to give away merchandise for free.

People flooded Shaw's supermarkets around the state when consumers spotted print ads that offered four, 12-packs of Pepsi products for free with a mail-in rebate. Shoppers also ran to Stop & Shop stores where ads offered 10 free 2-liter bottles of Pepsi with a mail-in rebate.

Sharp-eyed Walgreen's customers scooped up free toothpaste because of a similar ad snafu.

The law requires retailers to apply all rebates at the cash register and submit the paperwork themselves, rather than having the customers submit the rebates.