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Advertising
Are
there any special rules for advertising on the
internet pursuant to the Consumer Sales Practices
Act?
No.
Internet advertising is governed by the
same rules as all other means of advertising.
Can
a dealer post a different price for a vehicle on
its website than is advertised elsewhere?
No.
The CSPA requires dealers to notify a
consumer of a dealer’s currently advertised
price for a motor vehicle.
Therefore, all customers are eligible for
the lowest currently advertised price of a
vehicle, regardless of whether they had access to,
or saw the advertisement.
If a customer is
unaware of an advertised price of a vehicle, must
they be told?
Yes.
The CSPA requires dealers to notify a
consumer of a dealer’s currently advertised
price for a motor vehicle.
Therefore, all customers are eligible for
the lowest currently advertised price of a
vehicle, regardless of whether they had access to,
or saw the advertisement.
I
want to advertise that vehicles will be sold for
less than invoice.
What requirements must I meet?
If
a dealer uses “invoice” in any advertisement,
the dealer must clearly and conspicuously disclose
in the advertisement that the invoice price may
not reflect the dealer’s actual cost of the
vehicle.
The dealer must make the actual invoice or
a copy of the invoice available to consumers upon
request.
When advertising a
price for a motor vehicle, can I exclude items
such as acquisition or bank fees?
No.
The Consumer Sales Practices Act requires
that your advertised price includes all costs to
the consumer, except tax, title and registration
fees and a documentary service charge (up to the
maximum allowed by law).
May
I use “Liquidation Sale” in my advertisement?
No.
The Consumer Sales Practices Act states
that it is a deceptive act or practice to make
reference to a liquidation sale or use a term of
similar import unless the supplier is in fact
liquidating all assets for final distribution.
May
an advertised price for a used motor vehicle be
compared to “list”, “sticker”,
“invoice” or “MSRP”?
No.
A motor vehicle dealer may only compare the
price of a new motor vehicle to “list”,
“sticker”, “invoice” or “MSRP”.
Can
a dealer advertise the price he/she will pay for a
trade in?
A
dealer may advertise the price he/she will pay for
a trade in ONLY IF:
(1)
The price of motor vehicles offered for sale by
the dealer is within the range of prices at which
the dealer usually sells said vehicles and is not
increased because of the amount offered for the
trade in and;
(2)
The advertised trade in price will be paid for all
vehicles regardless of their condition or age, or
unless the advertisement clearly and conspicuously
discloses the conditions the trade in vehicle must
meet before such advertised price will be paid.
May
a price to be paid for a trade in be advertised as
a range of prices?
No.
Advertising “Up to $2,000 for your
trade” violates the Ohio Consumer Sales
Practices Act.
In
a radio ad, can I use a 1-800 number to provide
all the Reg. M Disclosures (fact that the offer is
for a lease, amount due at lease inception,
payment schedule and end of lease liability)?
No.
For lease disclosures, a reference to an
800 phone can be used to make a very limited
number of disclosures.
However, most disclosures required when a
triggering term is used must be disclosed in the
advertisement itself.
The
text of the ad still must include:
-
that
the transaction advertised is a lease;
-
the
total amount due before or at consummation, or
by delivery if delivery occurs after
consummation; and
-
the
number, amounts, and due dates or periods of
scheduled payments under the lease.
The 1-800
number may be used to disclose mileage
allowances/penalties, and may refer to other
disclosures. This
toll-free phone number- which only applies to
radio and TV ads - must be established no later
than the ad's air date.
It also must continue for at least 10 days
after the air date. Callers must be given all the
required disclosures early in the message.
A clear and conspicuous written copy of the
disclosures also must be given to anyone who asks
for it.
Can
a dealer advertise a price for a vehicle which is
available only to employees, for example DCX,
A-Plan or GMS pricing?
Yes.
Advertising a price or payment that is
available only to employees of a particular
manufacturer is permissible.
However, certain disclosures are necessary
to prevent claims that the advertisement is
misleading or deceptive.
First, the fact that you are advertising a
price or payment that is available only to
employees must be disclosed in a clear and
conspicuous manner.
Next, remember that abbreviations such as
“A Plan”, “GMS”, and
“DCX” cannot be used unless you explain
what those terms mean.
For example, an advertisement with a banner
offering “GMS Prices!” must also include a
definition (“GMS prices are available to GM
employees and family”).
The disclosure should be clear, conspicuous
and in close proximity to your offer.
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