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I've read it over several times and it seems straight forward, but a friend stated there was more to the rule. He states that at a GW gameshop they used this: Consolidate 3" towards closet enemy and you can engage a new unit, but if you do, that new unit gets a free attack against you.

Now I have looked everywhere and cannot find where it says that you can engage and the unit gets a free attack. Can any of you help out?

Thanks

A unit can be selected to fight in the fight phase if it is within 1'' of an enemy unit. Consolidation happens after a unit has fought. If you choose to consolidate to within 1'' of an enemy unit that unit is now eligible to fight, meaning that it essentially gets a "free" attack in the sense that you gave it the opportunity to fight.

If they mean a literal free attack where they just get to hit out of order, that isn't supported by the rules.

Any unit within 1" of an enemy model may be chosen to fight during the fight phase. Since Consolidating happens at the end of a unit's activation, before the next unit is activated to pile in, fight, and consolidate, and the fight phase continues until all units that can fight have fought [and all units than can fight must fight], a unit that you consolidate into combat with is now eligible to fight in the fight phase, and must fight. So don't consolidate into a squad of Khorne Berzerkers!

Also worth mention, Pile In happens before you fight, and Pile In follows the same rules as Consolidating. It's possible to Pile In to a unit that you didn't charge, and then fight them, as well. Note that any unit that charged is eligible to fight, so if you have two units charge the same enemy, one could kill the enemy unit off, and the second unit could Pile In to a new unit that wasn't charged to fight them.

 Inquisitor Lord Katherine wrote:
Any unit within 1" of an enemy model may be chosen to fight during the fight phase. Since Consolidating happens at the end of a unit's activation, before the next unit is activated to pile in, fight, and consolidate, and the fight phase continues until all units that can fight have fought [and all units than can fight must fight], a unit that you consolidate into combat with is now eligible to fight in the fight phase, and must fight. So don't consolidate into a squad of Khorne Berzerkers!

Also worth mention, Pile In happens before you fight, and Pile In follows the same rules as Consolidating. It's possible to Pile In to a unit that you didn't charge, and then fight them, as well. Note that any unit that charged is eligible to fight, so if you have two units charge the same enemy, one could kill the enemy unit off, and the second unit could Pile In to a new unit that wasn't charged to fight them.

Katherine, clarification:

3. Choose targets:
"... Models that charged this turn can only target enemy units that they charged in the previous phase."

A charging unit cannot pile into a new unit and fight them. The receiver of a charge can, or any unit that starts in combat. But pile in does have to be towards the nearest enemy model, which limits options.