Utah Admin. Code R877-23V-7 - Misleading Advertising Pursuant to Utah Code Ann. Section 41-3-210
(1)
(a) "Advertisement" means any oral, written,
graphic, or pictorial statement made that concerns the offering of a motor
vehicle for sale or lease.
(b)
"Advertisement" includes any statement or representation:
(i) made in a newspaper, magazine, electronic
medium, or other publication;
(ii)
made on radio or television;
(iii)
appearing in any notice, handbill, sign, billboard, banner, poster, display,
circular, pamphlet, letter, or other printed material;
(iv) contained in any window sticker or price
tag; or
(v) in any oral
statement.
(c)
"Advertisement" includes the terms "advertise" and "advertising".
(d) "Advertisement" does not include:
(i) a statement made solely for obtaining
motor vehicle financing or a motor vehicle title; or
(ii) hand written negotiation sheets between
a dealer and a customer of the dealer.
(2) Violation of this section constitutes a
violation of licensing prohibitions and requirements under Section
41-3-210.
(a) Accuracy. Any advertised statements and
offers about a motor vehicle as to year, make, model, type, condition,
equipment, price, trade-in-allowance, terms, or other similar information,
shall be clearly set forth and based upon facts.
(b) Bait. Bait advertising and bait and
switch selling practices may not be used.
(i)
Except as provided in Subsections (2)(b)(ii) and (iii), a motor vehicle
advertised at a specific price shall be in the possession of the advertiser at
the address given.
(ii) A new motor
vehicle that is in transit to the advertiser at the address given, is
considered in the possession of the advertiser if the advertiser is a dealer of
that make of new motor vehicle.
(iii) A used motor vehicle that is in transit
to the advertiser at the address given, is considered in the possession of the
advertiser if the advertiser produces, upon request by any employee of the
division, proof of purchase for the advertised vehicle establishing a date of
purchase before the date of the advertisement.
(iv)
(A) An
advertised vehicle shall be willingly shown, demonstrated, and sold.
(B) If an advertised vehicle is sold, the
advertiser shall, upon request of any prospective purchaser, peace officer, or
employee of the division, show sales records of the advertised motor
vehicle.
(v) If an
advertisement contains a picture of a motor vehicle and a price, the motor
vehicle pictured shall be a similar model with similar options and accessories
as the advertised motor vehicle.
(c)
(i)
Price. If the price or payment of a motor vehicle is quoted, the motor vehicle
shall be clearly identified as to make, year, model, and if new or
used.
(ii) Except as provided in
Subsection (c)(i)(iii), the advertised price of a motor vehicle shall include
charges that the customer shall pay for the motor vehicle, including any
charges for freight, destination, dealer preparation, dealer handling, or any
non-optional items installed on the vehicle at the time of the
advertisement.
(iii) The following
amounts are not required to be included in the advertised price that the
customer shall pay for the motor vehicle:
(A)
dealer documentary service fees;
(B) if optional, charges for undercoating,
rustproofing, window etching, window tint, an alarm system, or any other
similar item;
(C) taxes or fees
required by the state, a county, or a local jurisdiction, including sales and
use taxes, titling and registration fees, safety and emission fees, and waste
tire recycling fees or;
(D)
temporary permit fees.
(iv) If "list", "sticker", or similar words
are used in an advertisement, the words may refer only to the manufacturer's
suggested retail price.
(v) If a
supplementary price sticker is used, the advertised price shall include all
items listed on the supplementary sticker.
(d) Savings and Discount Claims. Because the
intrinsic value of a used motor 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 $ .....
(i) The word "wholesale" may not be used in
retail motor vehicle advertising.
(ii) When a motor vehicle advertisement
contains an offer of a discount on a new motor vehicle, the amount of the
discount must be stated by reference to the manufacturer's suggested retail
price of the motor vehicle.
(e)
(i) Down
Payments. The amount of the down payment may not be stated in a manner that
suggests that the down payment is the selling price of the motor
vehicle.
(ii) If an advertisement
states "You can buy with no money down", or uses similar language, the customer
must be able to leave the dealership with the motor vehicle without paying any
money.
(f) Trade-in
Allowance.
(i) A specific trade-in amount or
range of trade-in amounts may not be used in advertising.
(ii) An advertiser may not assert that a
trade-in will be paid off regardless of what is owed on the vehicle.
(g)
(i)
(A)
Finance. The phrases, "no finance charge", "no carrying charge", or similar
expressions may not be used if there is a charge for placing a transaction on a
time payment basis.
(B) A statement
representing or implying that no prospective credit purchaser will be rejected
because of inability to qualify for credit, such as "we accept all credit
applications," may not be used.
(ii) If the amount of the advertised payment
changes during the term of the loan, both the payments and the terms of the
loan shall be disclosed together.
(h)
(i)
Unpaid Balance and Repossessions. The term "repossessed" may only be used to
describe a motor vehicle that has actually been repossessed.
(ii) The division may require an advertiser
that offers a repossessed motor vehicle for sale to provide proof that the
motor vehicle was repossessed.
(iii) The unpaid balance shall be the full
selling price unless otherwise stated.
(i)
Current Used. If a used motor vehicle, as defined by Section
41-3-102 is advertised, the first
line of the advertisement shall:
(ii) contain the term "used," "pre-owned,"
"certified used," "certified pre-owned," or other similar term used to
designate a used motor vehicle; or
(iii) clearly indicate that the motor vehicle
offered is used.
(j) Demonstrator, executive's, or official's
motor vehicle.
(i)
(A) "Demonstrator motor vehicle" means a
motor vehicle used by a new motor vehicle dealer or personnel of a new motor
vehicle dealer for demonstrating performance ability.
(B) "Demonstrator motor vehicle" does not
include a motor vehicle that:
(I) has
previously been sold or leased to a member of the public; or
(II) is purchased or leased for personal
use.
(ii)
(A) "Executive's motor vehicle" or
"official's motor vehicle" means a motor vehicle that has been used exclusively
by an executive or official of the dealer's franchising manufacturer or
distributor, or by an executive or official of the franchised
dealership.
(B) "Executive's motor
vehicle" or "official's motor vehicle" does not include a motor vehicle that:
(I) has previously been sold or leased to a
member of the public; or
(II) is
purchased or leased for personal use.
(iii) A demonstrator motor vehicle,
executive's motor vehicle, or official's motor vehicle:
(A) may only be advertised for sale by a
dealer who is franchised for the sale of that make of new motor vehicle;
and
(B) shall be clearly and
prominently advertised as a demonstrator motor vehicle, executive's motor
vehicle, or official's motor vehicle.
(k) Mileage Statements. If an advertisement
quotes the number of miles or a range of miles a motor vehicle has been driven,
the dealer shall:
(i) have a properly
completed odometer disclosure statement evidencing that the motor vehicle has
not been operated in excess of the advertised mileage at the time of the
advertisement; and
(ii) upon
request of any prospective purchaser, peace officer, or employee of the
division produce all documents in its possession pertaining to that motor
vehicle so that the mileage may be readily verified.
(l)
(i)
Underselling Claims. Underselling claims include:
(A) "our prices are guaranteed lower than
elsewhere";
(B) "money refunded if
you can duplicate our values";
(C)
"we guarantee to sell for less";
(D) "we sell for less";
(E) "we purchase motor vehicles for less so
we can sell them for less";
(F)
"highest trade-in allowance";
(G)
"we give more in trade than any other dealers"; or
(H) a claim similar to Subsections
(2)(l)(i)(A) through (G).
(ii) Unsupported underselling claims may not be used.
(iii) Evidence of supported underselling
claims shall:
(A) be contained in the
advertisement; and
(B) be produced
upon request of a prospective purchaser, peace officer, or employee of the
division.
(m)
Free. The term "Free" or words of similar meaning, may be used in advertising
only if the advertiser is offering a gift that is not conditional on the
purchase of any item of tangible personal property or service.
(n)
(i)
Driving Trial. "Driving trial" means an offer to allow a customer to drive a
motor vehicle during a trial period and return the motor vehicle to the dealer
at the conclusion of the trial period.
(ii) If a motor vehicle dealer offers a
driving trial, the offer shall:
(A) be in
writing;
(B) contain the terms and
conditions of the offer;
(C) be
provided to the customer before the customer takes possession of the motor
vehicle that is subject to the driving trial;
(D) provide for the cancellation and return
of signed agreements;
(E) provide
for the refund of any money or other consideration paid to participate in the
driving trial, unless the offer provides otherwise in writing; and
(F) provide for the return of the motor
vehicle that was driven during the driving trial and for the return of the
customer's vehicle.
(o)
(i)
Guarantee or warranty. An advertisement that uses a term such as "guarantee,"
"warranty," or other similar term implying protection, shall include an
explanation of each term and coverage of the guarantee or warranty including
the time period of coverage of the guarantee or warranty, in clear and concise
language.
(ii) A motor vehicle
dealer shall provide a purchaser with a written document stating the specific
terms and coverage of a guarantee or warranty, including the time period of
coverage of the guarantee or warranty.
(p) Name Your Own Deal. Statements including
"write your own deal," "name your own price," "name your own monthly payments,"
"appraise your own motor vehicle," or similar statements may not be
used.
(q)
(i) Disclosure of Material Facts. A
disclosure of material fact that is contained in an advertisement and that
involves a type of motor vehicle or motor vehicle transaction shall be made in
a clear and conspicuous manner.
(ii) A disclosure under Subsection (2)(q)(i)
may not include:
(A) fine print;
(B) mouse print;
(C) font or font size smaller than the
smallest font or font size of the text used throughout the body of the
advertisement; or
(D) use of an
asterisks or other reference symbol to give additional information if the
additional information contradicts or substantially changes the meaning of the
advertised statements.
(iii) The speed of the words spoken in any
verbal advertisement shall be constant throughout the advertisement.
(r)
(i) Lease. If an advertisement relates to a
lease, the advertisement shall clearly state that the transaction advertised
involves a lease.
(ii) For purposes
of this Subsection (2)(r), the term "lease" shall be used and shall appear in a
prominent position in the advertisement in a font and font size as large as the
largest text used to directly advertise the motor vehicle.
(iii) A lease advertisement may not contain
the phrase "no down payment" or use a similar phrase if any payment is required
to lease the motor vehicle.
(iv)
Lease terms that are not available to the general public may not be included in
an advertisement directed at the general public.
(v) Limitations and qualifications applicable
to the lease terms advertised shall be clearly and conspicuously
disclosed.
(s)
Electronic Medium Disclosures. A disclosure appearing in any electronic
advertising medium shall clearly and conspicuously feature all necessary
information in a manner that may be read and understood if type is used, or
that may be heard and understood if audio is used.
(t) Invoice or Cost. The terms "invoice" or
"factory invoice" may be used if the dealer is willing to show the factory
invoice to the prospective buyer. The term "cost" may not be used.
(u) Rebate Offers. "Rebate", "cash rebate,"
or similar terms may be used only if it is clearly and conspicuously stated who
is offering the rebate.
(v)
Buy-down Interest Rates. A buy-down interest rate may not 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 motor
vehicle.
(w) Special Status of
Dealership. A motor vehicle 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.
(x)
(i) Price Equaling. An advertisement that
expresses a policy of matching or bettering a competitor's price shall fully
disclose any conditions that apply and specify the evidence a consumer shall
present to take advantage of the offer.
(ii) The evidence described in Subsection
(2)(x)(i), may not place an unreasonable burden on a consumer.
(iii) It is not considered to be an
unreasonable burden on a consumer to require the consumer to bring a written
offer made to that consumer by an authorized representative of a dealership on
a substantially similar motor vehicle.
(y) Auction. "Auction," "auction special," or
other similar terms may be used only in connection with a motor vehicle offered
or sold at a bona fide auction.
(z)
Layout and Type Size. The layout, headlines, illustrations, or font size of a
printed advertisement and the broadcast words or pictures of radio, television,
or electronic medium advertisements may not convey or permit an erroneous or
misleading impression as to a motor vehicle offered at a featured price.
(aa)
(i) "Clearly, conspicuously, and accurately"
means:
(A) in bold print and in a font size
that is capable of being read without unreasonable effort;
(B) in terms that are understandable to the
buying public; and
(C) printed
close to the qualified representation and not separated or buried by an
asterisk in some other part of the advertisement.
(ii) An advertisement of the following may
not be misleading and any necessary qualifications shall be clearly,
conspicuously, and accurately stated to prevent misunderstanding:
(A) an offer;
(B) an expression;
(C) a display of price;
(D) a term;
(E) a down payment;
(F) a trade-in allowance;
(G) a cash difference;
(H) a savings; or
(I) a term similar to Subsections
(2)(aa)(i)(A) through (H).
(bb)
(i) An
advertisement shall disclose if a vehicle has a branded title or salvage
certificate.
(ii) The disclosure
described in Subsection (2)(bb)(i) shall be made by inserting the terms
"salvage certificate" or "branded title," as appropriate:
(A) immediately following the year, make, and
model of the advertised vehicle; and
(B) in the same font and font size as is used
to advertise the year, make, and model of the vehicle.
Notes
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