Texas Automobile Dealers Association

Transcription

1 Austin, Texas Fax: (512) (512) P.O. Box 1028 Serving the franchised new car and truck dealers of Texas since 1916 A D A Page-i- T 2Business and Commerce Code, Chapter TAC Everybody Financed, No Credit Rejected, We Finance Anyone or Payments, or similar statements are prohibited. 1. Write Your Own Deal, Name Your Own Price, Name Your Monthly (43 TAC 8.247(1), (2), (3)) Prohibited Claims in the TADA Edition of Dealer Rules. Attached is a complete listing of the Division s rules, which can also be found Division. misunderstood advertising rules that the dealership is charged with compliance by the This Advertising Rule Reminders is a review of commonly overlooked or enforces are designed to present a professional image to the public as well as to keep misleading, or deceptive advertising which would be actionable under the Deceptive The advertising rules that the Motor Vehicle Division ( Division ) oftxdot the dealership in compliance with federal regulations and enjoin any false, Trade Practices-Consumer Protection Act (DTPA) 2. ADVERTISING RULE REMINDERS Date: June 5, 2008 From: Karen Phillips To: TADA Members Re: Advertising Rule Reminders MEMORANDUM Texas Automobile Dealers Association

2 unless the dealer can prove the claim, is prohibited. 3. Advertising that No Other Dealer Gives Greater Trade-in Allowances, Page -2- returned to himself or for his benefit subsequent to payment in full (43 TAC 8.244(16)). amount of the purchase price by the sum of money or the purchaser may opt for the money to be the purchaser after full payment has been rendered. The purchaser may choose to reduce the 4 Rebate or Cash Back A sum of money refunded to a purchaser or for the benefit of poster, display, circular, pamphlet, letter, on the radio, the Internet, or on-line, or television (43 TAC 8.244(1)). soliciting business. It includes a statement or a representation in a newspaper, magazine, a sign, 3 Advertisement means an oral, written, graphic, or pictorial statement made when Less Rebate (or Dealer Sales Price $19,000 Discount) $ MSRP $20,000 disclosed before and after the incentive program. As an example: (c) When advertising a price with an incentive program, the price must be Assigned to Dealer, or With Down Payment. Trade, With Acceptable Trade, With Dealer-Arranged Financing, Rebate This means the dealership may not advertise a price and claim that the price is after a trade, a rebate, 4 a down payment, or with financing at the dealership. (b) An advertised price may not be qualified by using terms such as With (1) Registration, title, license fees, applicable deputy fee; (2) Any taxes; (3) Any other fees or charges that are allowed or prescribed by law. the advertised price are: that advertised price to any retail buyer. The only charges that may be excluded from (a) If advertising 3 a price, the dealership must be willing to sell the vehicle at (43 TAC 8.250) Price Advertising inability to qualify for credit are prohibited. similar statements suggesting that no credit purchaser will be rejected because oftheir

3 Do not reference Dealer s Cost or Dealer s Invoice in advertising. Page -3- B. The number of months to make repayment and the amount per A. The amount or percentage of the down payment; AND The advertisement must include: 2. The amount of any payment; or 5. The amount of any finance charge, 4. The period of repayments; or, 3. The number of payments; or amount); or 1. The amount of a down payment (either in a percentage or dollar If advertising: (43 TAC 8.264) Required Sales Payment Disclosures converter s total MSRP. (See Price Advertising above). $2,000 discount off MSRP; $2.000 savings off MSRP. difference between the dealer s sales price and the manufacturer s, distributor s, or If a savings claim or discount is advertised on a new vehicle, show the If advertising only the amount of a discount or savings, an example is: advertising a savings or discount. Do not use NADA or other publicized comparisons. Do not advertise Thousands Below Original Price. Do not use statements such as Up To, As Much As, or From when Do not advertise a savings claim on a used vehicle. (43 TAC 8.263) Savings Claims and Discount Offers when advertising. Do not Guarantee a Trade-in Amount or a range of amounts for a trade-in (43 TAC 8.252, 8.253) Cost Advertising. Invoice Advertising. Trade-in Allowances Are Prohibited

4 D. The amount of the APR if it is increased after consummation. Page -4- (43 TAC 8.244(6)). color, contrast, and audibility and presented so as to be readily noticed and understood. All language and terms, including abbreviations, must be of common or ordinary usage and meaning 6 Clear and Conspicuous the statement, representation, or term must be of a size, the down payment (43 TAC 8.244(4)). transaction that is more than twice as large as the average of all prior scheduled payments except 5 Balloon Payment Any scheduled payment made as required by a consumer credit Sale, then the business must close its operations and follow the procedures required in the Business & Commerce Code, Chapter 17, Subchapter F. Sale, Closing Out Sale, Shutting Doors Sale, Foreclosure Sale, or Bankruptcy If advertising a Liquidation Sale, Auction Sale, Going Out of Business (43 TAC 8.269) Bankruptcy/Liquidation Sale business. will be given the same price or the same discount as a multi-purchase commercial Do not advertise Fleet Prices or Fleet Sales or imply that a retail purchaser (43 TAC 8.268) Fleet Price Advertising is Prohibited disclosed in the advertisement. conspicuously 6 disclosed and the requirements must be clearly and conspicuously If advertising a Meet or Beat guarantee, the conditions must be clearly and claims. Do not advertise Best Deal, Lowest Price, Best Price, or other superlative (43 TAC 8.267) Superlative Claims C. The APR; AND month, including any balloon payment 5; AND

5 absorb, or refund a part of the motor vehicle sales tax that is due. A dealer may not advertise or tell a customer that the dealership will assume, Page -5- grade, or that goods are of a particular style or model, if they are of another. E. Representing that goods or services are of a particular standard, quality, or existence of, or the amount of price reductions. D. Making a false or misleading statement concerning the reasons for or the quantity. expectable public demand, unless the advertisement discloses a limitation of C. Advertising goods or services with the intent not to supply a reasonable B. Advertising goods or services with the intent not to sell them as advertised. misleading representation of facts. A. Disparaging the goods, services, or business of another by false or False, misleading, or deceptive acts or practices include: as actionable by an individual filing by a consumer. action by the consumer protection division of the Attorney General s office as well A false, misleading, or deceptive act or practice is unlawful and subject to (Business & Commerce Code 17.46) Deceptive Trade Practices-Consumer Protection Act (DTPA) A penalty may be imposed for a violation up to $10,000 for each violation. Each violation and each day a violation continues is a separate violation. Civil Penalty (Occupations Code (a)) (34 TAC 3.74(h)) Sales Tax Advertising

6 G. Failing to disclose information concerning goods or services which was Page -6- If you have any questions, please call me at attorneys fees (B & C Code 17.50(d)). Each prevailing consumer is awarded court costs and reasonable and necessary damages; or, if the trier of fact determines that the conduct was committed times the amount of damages for mental anguish and economic damages. economic damages. If the trier of fact (judge orjury) determines that the defendant s conduct was committed knowingly, the consumer may also recover damages for mental anguish and the trier of fact may award up to 3 times the amount of economic intentionally, the consumer may recover damages for mental anguish and award 3 If a consumer prevails in a DTPA cause of action, the consumer may obtain (B & C Code 17.50(b)(1) Damages Under the DTPA was intended to induce the consumer into a transaction into which the known at the time of the transaction if the failure to disclose the information consumer would not have entered had the information been disclosed. of business. F. Advertising a sale by fraudulently representing that a person is going out