R877. Tax Commission, Motor Vehicle Enforcement.
R877-23V. Motor Vehicle Enforcement.
R877-23V-7. Misleading Advertising Pursuant to Utah Code Ann. Section
41-3-210.
Violation
of any of the following standards of practice for the advertising and selling
of motor vehicles is a violation of Section 41-3-210.
(1) Accuracy. Any advertised statements and offers about a vehicle as to
year, make, model, type, condition, equipment, price, trade-in-allowance,
terms, and so forth, shall be clearly set forth and based upon facts.
(2) Bait. Bait advertising and selling practices may not be used. A vehicle advertised at a specific
price shall be in the possession of the advertiser at the address given. It shall be willingly shown,
demonstrated and sold, or, in the case of a new vehicle floor model, orders
shall be taken for future delivery of the identical model at the advertised
price and terms. If sold, the
advertiser shall, upon request of any prospective purchaser, peace officer, or
employee of the division, show sales records of the advertised vehicle.
(3)(a)(i) Price. When the price of a vehicle is quoted, the vehicle shall be
clearly identified as to make, year, model and if new or used. Except as provided in Subsection
(3)(a)(ii), the advertised price must include all charges that the customer
must pay for the vehicle, including freight or destination charges, dealer
preparation, dealer handling, and additional dealer profit.
(ii) The following fees are not required to
be included in the advertised price that the customer must pay for the vehicle:
(A) dealer document service fees;
(C) sales tax, or titling and registration
fees required by the state or a county.
(b) In addition to other advertisements,
this pertains to price statements such as "$..... Buys".
(c)
When "list", "sticker", or words of similar import are used
in an advertisement, they may refer only to the manufacturer's suggested retail
price. If a supplementary price sticker
is used, the advertised price must include all items listed on the
supplementary sticker.
(d) If the customer requests and receives a
temporary permit, the temporary permit fee need not be included in the
advertised price. Documentation
fees are not required by the state or counties.
(4) Savings and Discount Claims. Because the intrinsic value of a used
vehicle is difficult to establish, specific claims of savings may not be used
in an advertisement. This includes
statements such as, "Was priced at $....., now priced at $......
(a) The word "wholesale" may not
be used in retail automobile advertising.
(b) When an automotive advertisement
contains an offer of a discount on a new vehicle, the amount of the discount
must be stated by reference to the manufacturer's suggested retail price of the
vehicle.
(5) Down Payments. The amount of the down payment may not
be stated in a manner that suggests that it is the selling price of the
vehicle. If an advertisement
states "You can buy with no money down", or terms of similar import,
the customer must be able to leave the dealership with the vehicle without
making any outlay of money.
(6) Trade-in Allowance. Statements representing that no other
dealer grants greater allowances for trade-ins may not be used. A specific trade-in amount or range of
trade-in amounts may not be used in advertising.
(7) Finance. The phrases, "no finance charge", "no
carrying charge", or similar expressions may not be used when there is a
charge for placing the transaction on a time payment basis. Statements representing or implying
that no prospective credit purchaser will be rejected because of inability to
qualify for credit may not be used.
(8)
Unpaid Balance and Repossessions.
The term "repossessed" may be used only to describe vehicles
that have actually been repossessed from a purchaser. Advertisers offering repossessed vehicles for sale may be
required to offer proof of those repossessions. The unpaid balance shall be the full selling price unless
otherwise stated.
(9) Current Used. When a used motor vehicle, as defined by Section 41-3-102,
of a current series is advertised, the first line of the advertisement must
contain the word "used" or the text must clearly indicate that the
vehicle offered is used.
(10) Demonstrators, Executives' and
Officials' Cars.
(a) "Demonstrator" means a
vehicle that has never been sold or leased to a member of the public.
(b) Demonstrator vehicles include vehicles
used by new vehicle dealers or their personnel for demonstrating performance
ability but not vehicles purchased or leased by dealers or their personnel and
used as their personal vehicles.
(c) A demonstrator vehicle may be
advertised for sale only by a dealer franchised for the sale of that make of
new vehicle.
(d) An executive's or official's vehicle
shall have been used exclusively by an executive of the dealer's franchising
manufacturer or distributor, or by an executive of the franchised dealership. These vehicles may not have been sold
or leased to a member of the public prior to the appearance of the
advertisement.
(e) Demonstrator's, executive's and
official's vehicles shall be clearly and prominently advertised as such. Advertisements shall include the year,
make, and model of the vehicle offered for sale.
(11) Taxi-cabs, Police, Sheriff, and Highway
Patrol Vehicles. Taxi-cabs,
police, sheriff, and highway patrol vehicles shall be so identified. These vehicles may not be described by
an ambiguous term such as "commercial".
(12) Mileage Statements. When an advertisement quotes the number
of miles or a range of miles a vehicle has been driven, the licensee must have
written evidence that the vehicle has not been operated in excess of the
advertised mileage.
(a) The evidence required by this section
shall be the properly completed odometer statement required by Section
41-1a-902.
(b) If a licensee chooses to advertise
specific mileage or a range of miles a vehicle has been driven, the licensee
shall upon request of any prospective purchaser, peace officer, or employee of
the division produce all documents in its possession pertaining to that vehicle
so that the mileage can be readily verified.
(13) Underselling Claims. Unsupported underselling claims may not
be used. Underselling claims
include the following: "our
prices are guaranteed lower than elsewhere", "money refunded if you
can duplicate our values", "we guarantee to sell for less",
"we sell for less", "we purchase vehicles for less so we can
sell them for less", "highest trade-in allowance", "we give
$300 more in trade than any other dealers". Evidence of supported underselling claims must be contained
in the advertisement.
(14) Would You Take $...... Use of cards, circulars, or other
advertising containing such offers as "would you take $....., if I could
get you $..... for your car", may not be used.
(15) Free. "Free" may be used in advertising only when the
advertiser is offering an unconditional gift. If receipt of the merchandise or service is conditional on a
purchase the following conditions must be satisfied:
(a) The normal price of the merchandise or
service to be purchased may not have been increased nor its quantity reduced;
(b) The advertiser must disclose this
condition clearly and conspicuously together with the offer and not by placing
an asterisk or symbol next to the word "free" and then referring to
the condition in a footnote; and
(c) The offer must be temporary. For purposes of this subsection,
"temporary" means that the offer is made for no more than 30 days
during any 12-month period.
(16) Driving Trial. A free driving trial means that the
purchaser may drive the vehicle during the trial period and return it to the
dealer within the specified period and obtain a refund of all moneys, signed agreements,
or other considerations deposited and a return of any vehicle traded in. The
exact terms and conditions of the free driving trial shall be set forth in
writing and a copy given to the purchaser at the time of the sale.
(17) Guaranteed. When words such as "guarantee",
"warranty", or other terms implying protection are used in
advertising, an explanation of the time and coverage of the guarantee or
warranty shall be given in clear and concise language. The purchaser shall be provided with a
written document stating the specific terms and coverage.
(18) Name Your Own Deal. Statements such as "write your own
deal", "name your own price", "name your own monthly
payments", "appraise your own vehicle", and phrases of similar
import may not be used.
(19) Disclosure of Material Facts. Disclosures of material facts that are
contained in advertisements and that involve types of vehicles and transactions
shall be made in a clear and conspicuous manner.
(a) Factors to be taken into consideration
include advertisement layout, headlines, illustrations, type size, contrast,
crawl speed and editing.
(b) Fine print, and mouse print are not
acceptable methods of disclosing material facts.
(c) The disclosure must be made in a
typeface and point size comparable to the typeface and point size of the text
used throughout the body of the advertisement.
(d) An asterisk may be used to give
additional information about a word or term, however, asterisks or other
reference symbols may not be used as a means of contradicting or substantially
changing the meaning of any advertising statements.
(20) Lease. When an advertisement relates to a lease, the advertisement
must make it readily apparent that the transaction advertised is a lease.
(a) The word "lease" must appear
in a prominent position in the advertisement in a typeface and point size
comparable to the largest text used to directly advertise the vehicle.
(b) Statements that do not use the term
"lease" do not constitute adequate disclosure of a lease.
(c) Lease advertisements may not contain
the phrase "no down payment" or words of similar import if an outlay
of money is required to lease the vehicle.
(d) Lease terms that are not available to
the general public may not be included in advertisements directed at the
general public.
(e) Limitations and qualifications
applicable to the lease terms advertised shall be clearly and conspicuously
disclosed.
(21) Television Disclosures. A disclosure appearing in television
advertisements must clearly and conspicuously feature all necessary information
in a manner that can be read and understood if type is used, or that can be
heard and understood if audio is used.
Fine print and mouse print do not constitute clear and conspicuous
disclosure.
(22) Invoice or Cost. The terms "invoice" or
"factory invoice" may be used as long as the dealer is willing to
show the factory invoice to the prospective buyer. The term "cost" may not be used.
(23) Rebate Offers. "Rebate", "cash
rebate", or similar terms may be used only when it is clearly and
conspicuously stated who is offering the rebate.
(24) Buy-down Interest Rates. No buy-down interest rate may be
advertised unless the dealer discloses the amount of dealer contribution and
states that the contribution by the dealership may increase the negotiated
price of the vehicle.
(25) Special Status of Dealership. An automotive advertisement may not
falsely imply that the dealer has a special sponsorship, approval status,
affiliation, or connection with the manufacturer that is greater or more direct
than any other like dealer.
(26) Price Equaling. An advertisement that expresses a
policy of matching or bettering competitor's prices shall fully disclose any
conditions that apply and specify the evidence a consumer must present to take
advantage of the offer. The
evidence requirement may not place an unreasonable burden on the consumer by,
for example requiring the consumer to produce a signed contract from another
dealer or to find a vehicle with the identical features.
(27) Van Conversion Advertisements. A dealer may advertise a modified
vehicle using the conversion firm's name and may refer to the chassis
manufacturer in a less prominent manner, but may not advertise a modified
vehicle solely by a chassis manufacturer's name unless enfranchised to sell
that make of vehicle.
(28) Auction. "Auction" or "auction special" and other
terms of similar import may be used only in connection with vehicles offered or
sold at a bona fide auction.
(29) Layout and Type Size. The layout, headlines, illustrations,
or type size of a printed advertisement and the broadcast words or pictures of
radio or television advertisements may not convey or permit an erroneous or
misleading impression as to which vehicle or vehicles are offered at featured
prices.
(a) When an advertisement contains a
picture of a vehicle along with a quoted price, the vehicle pictured must be
the exact model with identical options and accessories as the vehicle
advertised.
(b) No advertised offer, expression, or
display of price, terms, down payment, trade-in allowances, cash difference,
savings, or other material terms may be misleading and any necessary
qualifications shall be clearly, conspicuously, and accurately set forth to
prevent misunderstanding.
(c) Qualifying terms and phrases shall be
clearly, conspicuously, and accurately set forth as follows:
(i) in bold print and in type of a size
that is capable of being read without unreasonable extra effort;
(ii) in terms that are understandable to the buying public; and
(iii) in close proximity to the qualified representation and not
separated or buried by asterisk in some other part of the advertisement.
KEY: taxation, motor vehicles