diff --git a/app/serializers/v3/product_serializer.rb b/app/serializers/v3/product_serializer.rb
index d0ccea8b4..90747f838 100644
--- a/app/serializers/v3/product_serializer.rb
+++ b/app/serializers/v3/product_serializer.rb
@@ -33,8 +33,11 @@ def eula_url
   end
 
   def free
-    # Everything is free on RMT :-)
+    # Everything is free on RMT :-) outside of the Public Cloud (i.e. LTSS)
     # Otherwise Yast and SUSEConnect will request a regcode when activating an extension
+    # FIXME
+    return object.free if defined?(SccProxy::Engine) && object.extension?
+
     true
   end
 
diff --git a/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb b/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb
index 3a002f4d1..6d6e15d97 100644
--- a/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb
+++ b/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb
@@ -540,6 +540,7 @@
           context 'when no regcode is provided' do
             it 'activates the product' do
               data = JSON.parse(response.body)
+              expect(data['product']['free']).to eq(false)
               expect(data['id']).to eq(product.id)
             end
           end