Mich. Admin. Code R. 125.1401 - Advertising; prohibited activities

Rule 401. A retailer, in connection with the sale of homes, equipment, or accessories, shall not, directly or indirectly, engage in any of the following activities:

(a) Advertise a home for sale if the name of the retailer does not appear in the advertisement. A home committed by a home owner to a retailer for sale may be advertised if the offer visibly states that the home is "offered on consignment."

(b) Advertise a home and falsely offer any year of manufacture, make, type, model, serial number, fixed location, price, equipment, or terms or make a claim or condition to the sale of a home that is not truthful.

(c) Advertise the phrase "close out," "final clearance," or "going out of business" or similar phrases in connection with home sales unless the phrase is true. A retailer who is going out of business shall comply with the provisions of 1961 PA 39, MCL 442.211 which includes regulation of the sales activities of businesses that are going out of business.

(d) Advertise the term "authorized retailer" if the retailer is not a manufacturer's authorized retailer or advertise as a franchised retailer if the retailer is not a registered franchised retailer under 1974 PA 269, MCL 445.1501.

(e) Advertise a home by making inaccurate, misleading, or false comparisons with competitors' services, prices, products, quality, or business methods.

(f) Use a picture or photograph of a home in advertising if the picture or photograph does not represent a home of the same year of manufacture, make, and model and does not contain all the standard equipment of the model that is actually being offered for sale at the price quoted in the advertisement.

(g) Advertise a home for sale in a manner that conveys or creates an erroneous impression as to which home is being offered at the advertised price.

(h) Advertise the statement "write your own deal" or "name your own price" or similar statements, unless the statements are true and a buyer can, in fact, negotiate his or her own price.

(i) Advertise the phrase "at cost," "below cost," "below wholesale," "below invoice," "above cost," "above wholesale," or "above invoice" or similar phrases, unless the phrases are true. As used in this subsection, "cost" means the actual price paid by a retailer to a manufacturer for a specific home as that price appears on the retailer invoice received from the manufacturer.

(j) Advertise a specified trade-in amount or range of amounts for a pre-owned home without offering the advertised trade-in amount or range of amounts regardless of the condition of the pre-owned home when presented to the retailer for trade-in by a prospective customer, unless the statement "subject to condition appraisal" is contained in the advertisement.

(k) Advertise that "no retailer has lower prices," "the retailer is never undersold," or statements of similar meaning, unless the statements are true.

(l) Advertise in a manner that is false or misleading as to what a new home guarantee, warranty, or protection includes.

(m) Advertise the phrase "manufacturer's warranty," unless referring to a new home covered by a bona fide written manufacturer's warranty.

(n) Advertise equipment, accessories, or other merchandise as "free" if the cost, or any part of the cost, is included in the quoted price of the home.

(o) Advertise the phrase "no credit rejected" or "we finance everyone" or similar phrases, unless the phrases are true.

(p) Advertise the offering of a rebate or referral bonus unless true.

(q) Advertise a home as new, unless it has never been occupied,

(r) Advertise, or infer by advertising, that a home is "repossessed," unless it is true.

(s) Advertise in any manner which infers that a purchaser will be receiving benefits of an existing loan on a home if the benefits do not exist.

(t) Advertise pre-owned homes as carrying an unused portion of the original manufacturer's warranty, unless this is true.

(u) Advertise the terms of financing a home, unless the advertisement is in compliance with all of the requirements of the federal truth in lending act, 15 U.S.C. §601 et seq., and the accompanying regulation Z, 12 C.F.R.part 226 et seq.

(v) Advertise under any other name than that which appears on the retailer license.

(w) Advertise for the buying of a home without the telephone number and the name of the retailer.

Notes

Mich. Admin. Code R. 125.1401

1979 AC; 1998 AACS; 2003 AACS; 2008 AACS