Just like da "too good to be true" situation, this term refers to some wonderful item/service dat you will supposedly receive for nothing, but which you should seriously wonder if that is actually "all there is to it", or if there is some hidden proviso involved.
Da Bible claims dat you will receive happiness and riches beyond belief if you "just believe", but it sounds to me just like a "too good to be free" deal. God makes you endure a life of excessive toil and misery and abstinence first, so what good is that??