A "free newspaper" refers to a publication that is distributed to readers at no cost. You don't have to pay any money to get a copy of this newspaper. Full definition
Within the hotel you'll find a garden and terrace, continental breakfast buffet served in your room or the breakfast room and free newspapers in the lobby. (holiday-weather.com)
I wrote about banning birthday treats for my local free newspaper. (thelunchtray.com)
I also line the drawer with free newspaper and change and clean the tray daily. (consciouscat.net)