The committee is looking at a number of areas of within the SP sector including rules on prizes, independent verification, and clarification of how the word 'free' can be used. In addition trade promotions such as BOGOFs could also come under the code.
Other legislation could also include rules obliging marketers to be "clear about the number of prize and nature of prizes including those that are available to win and guaranteed to be won."
Proposed changes to the overall code include restrictions on marketing to children and claims dealing with health, nutrition and the environment. It is the first time the non-broadcast code has been reviewed for 13 years.
The consultation, which is being headed up by former Britvic marketing Andrew Marsden, will run until mid-June.
The use of the word 'free' has been vexing the authorities over the last 18 months. Last year the government issued guidelines to Trading Standards advising them to ignore EU rules banning use of the word in multi-buy deals like BOGOFs. The government's stance has received criticism from the other EU member states.