Wis. Admin. Code Department of Transportation Trans 139.03 - Advertising and sales representations

(1) TRUTHFUL. The use of false, deceptive or misleading advertising or representations by any licensee to induce the purchase of a motor vehicle constitutes an unfair practice and is prohibited.

(2) FACTUAL.

(a) Any licensee, making any statement of fact to the public in any advertisement or written statement or representation concerning the motor vehicles it offers for sale, the services it provides or other aspects of its business operation, shall possess detailed evidence of the validity and accuracy thereof, which evidence shall be furnished to the department upon request.

(b) Terms such as "largest" when referring to dealership size shall be based solely on vehicle sales volume and shall clearly state the basis for the claim, including vehicle make, time period if other than entire prior 12 months and geographic area if other than statewide, in the advertisement. Each vehicle make shall be considered separately in determining new vehicle sales volume.

(3) DISCLOSURES REQUIRED WHEN ADVERTISING PRICE.

(a) When the price of a motor vehicle is advertised by a dealer licensee, or a group of dealer licensees are named in a joint advertisement, the advertised price shall include all charges that shall be paid by the purchaser to acquire ownership of the vehicle with the exception of sales tax, title and registration fees. The advertised price does not need to include the amount of the service fee if the advertisement clearly and conspicuously discloses that the advertised price does not include the optional service fee. In the print media, the disclosure of the amount of the service fee or the disclosure that the advertised price does not include the optional service fee shall be printed in not less than 9-point boldface type or not smaller than the largest typeface within the advertisement. In other advertising media, the disclosure of the amount of service fee or the disclosure that the advertised price does not include the optional service fee should be clearly communicated to the intended audience.

(b) Use of terms such as "invoice," "cost," or similar terms, when advertising the price of a motor vehicle, and accessories, is an unfair practice and prohibited unless the advertisement discloses the dealer's actual cost is less because there are, or may be, factory holdbacks, rebates, incentives, or other discounts to the dealer, if that is the case.

(c) Whenever a dealer licensee has a promotion on a used motor vehicle and a sales price is stated in an advertisement, the sales price shall be disclosed on the vehicle during the sales promotion period.

(4) TRADE-IN ALLOWANCE. No specific price shall be stated in an advertisement as an offer for a trade-in, if the price so stated is contingent upon the condition, model, or age of the prospective purchaser's vehicle to be traded. Use of the phrases "up to," "as much as" or similar phrases regarding a trade-in allowance is an unfair practice and prohibited.

(5) USED VEHICLE COMPARATIVE SAVINGS. The use of manufacturer suggested retail prices, wholesale or retail dealer pricing guides, or similar price guides to advertise comparative savings for used vehicles other than demonstrators or executives is an unfair practice and prohibited, except that a motor vehicle pricing guide may be used if the use of the guide as the source of the pricing is stated in any required disclosure and the dealer makes the full objective documentation used to set the price available in writing to the customer.

(7) FREE MERCHANDISE. It is unfair practice to use the word "free" or any other word or words of similar import, in any advertising, if receipt of the free merchandise, equipment, accessories or service is conditioned by purchase of a vehicle or related accessories.

(8) ESTABLISHING PRICE. Use of phrases such as "write your own deal," "name your own price," "appraise your own vehicle," and similar phrases is an unfair practice and prohibited.

(9) SALES.

(a) Use of phrases such as "last of the remaining," "close-out," "final clearance," "clearance," and similar phrases when used in reference to used motor vehicles, other than demonstrator and executive vehicles, is an unfair practice and prohibited, unless the dealer licensee is actually discontinuing business.

(b) Use of phrases such as "last of the remaining," "close-out," "final clearance," "clearance" and similar phrases when used in reference to demonstrator, executive and new motor vehicles is an unfair practice and prohibited, unless the dealer licensee is not replacing the vehicles with similar vehicles of the same model year, or is actually discontinuing business.

(10) VEHICLE AVAILABILITY. It is an unfair practice for a licensee to advertise motor vehicles or types of motor vehicles for sale unless the licensee has available, for delivery within a reasonable time, a quantity of the advertised vehicles sufficient to meet reasonably anticipated demands, unless the advertisement clearly and specifically discloses any limitations as to the quantity available or time of delivery.

(11) NAME AND ADDRESS. Dealer and salesperson licensees are prohibited from advertising motor vehicle sales at an address or from listing a phone number or electronic mail address other than that of either the licensed business premises, or temporary locations as authorized by s. Trans 138.08, except that a licensee may list the phone number or electronic mail address of the licensee's home in addition to the business phone number and address on a business card. Advertisements shall include the business name.

(12) NEW VEHICLES. Franchised new vehicle dealers, distributors and manufacturers are the only licensees permitted to advertise or sell new vehicles.

(13) MODEL YEAR AND IF USED. When advertising any motor vehicle, a dealer or salesperson licensee shall state the vehicle's model year and, if the vehicle is of the current or previous model year, shall designate the vehicle as used if that is the fact. Reference to "low mileage," "X-miles," "one-owner," "demonstrator," "executive," or other words of similar meaning shall serve to designate the vehicle as used. If all vehicles in an advertisement are used, one reference to designate that they are used is sufficient.

(14) EXPIRATION TERMS OF SALES OR PROMOTIONS. Whenever a sale or promotion offering gifts, merchandise, equipment, accessories, service, discounts, price reductions, or cash is advertised, the advertisement shall also specifically disclose the expiration terms or date of the sale or promotion.

(15) TWO OR MORE DAMAGED VEHICLES. Whenever a promotion or sale involving 2 or more vehicles damaged by the same cause as a result of the same incident is offered by a dealer licensee, all accompanying advertising shall disclose the cause of damage, regardless of the extent of damage.

(16) FLOOD OR WATER DAMAGED VEHICLES. Whenever a dealer licensee offers, promotes the sale of, or sells a flood or water damaged vehicle, all advertising relating to that vehicle shall disclose that the vehicle has been flood or water damaged. Required disclosure of flood or water damage is limited to that which the dealer could find using reasonable care.

Notes

Wis. Admin. Code Department of Transportation Trans 139.03

Cr. Register, March, 1973, No. 207, eff. 4-1-73; am. (5) and (14), Register, June, 1974, No. 222, eff. 7-1-74; am. (2) (a), r. (2) (b), (3) (a) and (8), renum. (9) and (10) to be (8) and (9), (11) and (15) are renum. (10) and (14) and am., renum. (12), (13), (14), (16) and (17) to be (11), (12), (13), (15) and (16), Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 24.02 and am., Register, 1982, No. 324, eff. 1-1-83; am. (3) (a), Register, October, 1983, No. 334, eff. 11-1-83; am. (5), (11) and (16), r. (6), Register, May, 1997, No. 497, eff. 9-1-97; CR 02-028: am. (3) (a), Register July 2002 No. 559, eff. 8-1-01; CR 08-029: am. (5) Register August 2008 No. 632, eff. 9-1-08.