This is one more example of various groups going to extremes in thinking. On one hand, the WT uses the expresssion "undeserved kindness" throughout, which in certain contexts (such as John 1:14 and the verse above, Ro 1:7) does not make sense, and in the other, we have some people pulling away from the basic idea of cha'ris, which carries the following idea:
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The New International Dictionary of New Testament Words: “(charis), grace, gracefulness, graciousness, favour, thanks, gratitude” “(charisma), gift given out of goodwill.” (Vol. 2, p. 115)
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James MacArthur: “One of the best-known definitions of grace is only three words: God's unmerited favor."
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William Barclay: “The whole basic idea of the word [cha'risma, closely related to cha'ris] is that of a free and undeserved gift, of something given to a man unearned and unmerited, something which comes from God's grace and which could never have been achieved or attained or possessed by a man's own effort.” (New Testament Words, 1974, p. 63)
"This word [grace] has always two basic ideas in it. (a) It always has the idea of something completely undeserved. [...] (b.) It always has the idea of beauty in it. In modern Greek the word means charm..." (The gospel of John, p. 66, Barclay)
In some Bible contexts, it is acceptable to render it as "undeserved kindness," where as in others it is better to render it, as "gracious favor" "loving kindness" "loving favor," etc. Hence, the biblical advice:
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“ Watch carefully in case any one of you should fall away from God's gracious favour and a resentment develop in him which could contaminate others.” (Hebrews 12:15 , 21 st Century NT)
"Now if it is by undeserved kindness, it is no longer due to works; otherwise, the undeserved kindness no longer proves to be undeserved kindness." (Ro 11:6, NWT)
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“ Consequently, what shall we say? Shall we continue in sin, that undeserved kindness may abound? Never may that happen! Seeing that we died with reference to sin, how shall we keep on living any longer in it?” (Romans 6:1,2, NWT)
Thus, it is a good thing to emphasize the positive aspect and beauty conveyed by "grace," but we cannot do away entirely of the Christian responsibility toward God. One group misuses the Greek word to extract more and more from their followers, and the other group hides behind the popular English word "grace" and the expression, "Once saved always saved" to excuse their poor conduct among men. The writings of Paul argue against those extremes. Balance is the key.