I hope we get feedback from Flynax on this issue.
I think this is a bug; but, there may be some logic behind its functionality.
I imagine at best a user will email admin wondering where is the Free listing advertised.
Definitely there needs to be an FYI about it; so, admin can refer to it when answering questions.
At worse they would just give up in confusion thinking website is dishonest.
If I as a novice administrator I can't figure it out, I do not expect user to figure it out either.
Anyways, I am glad you taught me how it currently functions.