It shall be unlawful for any licensee or motor vehicle dealer to engage,
directly or indirectly, in the following acts:
(1) To advertise and offer any year, make, engine size, model, type,
equipment, price, trade-in allowance, or terms or make other claims or conditions
pertaining to the sale, leasing, or rental of motor vehicles, motorcycles,
and trailers which are not truthful and clearly set forth;
(2) To advertise for sale, lease, or rental a specific motor vehicle,
motorcycle, or trailer which is not in the possession of the dealer, owner,
or advertiser and willingly shown and sold, as advertised, illustrated, or
described, at the advertised price and terms, at the advertised address. Unless
otherwise specified, a motor vehicle, motorcycle, or trailer advertised for
sale shall be in operable condition and, on request, the advertiser thereof
shall show records to substantiate an advertised offer;
(3) To advertise a new motor vehicle, motorcycle, or trailer at a price
which does not include standard equipment with which it is fitted or is ordinarily
fitted, without disclosing such fact, or eliminating any such equipment for
the purpose of advertising a low price;
(4) To advertise (a) that the advertiser's prices are always or generally
lower than competitive prices and not met or equalled by others or that the
advertiser always or generally undersells competitors, (b) that the advertiser's
prices are always or generally the lowest or that no other dealer has lower
prices, (c) that the advertiser is never undersold, or (d) that no other advertiser
or dealer will have a lower price;
(5) To advertise and make statements such as, Write Your Own Deal, Name
Your Own Price, or Name Your Own Monthly Payments and other statements of
a similar nature;
(6) To advertise by making disparaging comparisons with competitors'
services, quality, price, products, or business methods;
(7) To advertise by making the layout, headlines, illustrations, and
type size of an advertisement so as to convey or permit an erroneous impression
as to which motor vehicle, motorcycle, or trailer or motor vehicles, motorcycles,
or trailers are offered at featured prices. No advertised offer, expression,
or display of price, terms, downpayment, trade-in allowance, cash difference,
or savings shall be misleading by itself, and any qualification to such offer,
expression, or display shall be clearly and conspicuously set forth in comparative
type size and style, location, and layout to prevent deception;
(8) To advertise the price of a motor vehicle, motorcycle, or trailer
without including all charges which the customer must pay for the motor vehicle,
motorcycle, or trailer, excepting state and local taxes and license, title,
and other fees. It shall be unlawful to advertise prices described as unpaid
balance unless they are the full cash selling price and to advertise price
which is not the full selling price even though qualified with expressions
such as with trade, with acceptable trade, or other similar words;
(9) To advertise as at cost, below cost, below invoice, or wholesale,
unless the term used is strictly construed that the word cost as used in this
subdivision or in a similar meaning is the actual price paid by the advertiser
to the manufacturer for the motor vehicle, motorcycle, or trailer so advertised;
(10) To advertise claims that Everybody Financed, No Credit Rejected,
or We Finance Anyone and other similar affirmative statements;
(11) To advertise a specific trade-in amount or range of amounts;
(12) To advertise the words Finance, Loan, or Discounts or others of
similar import in the firm name or trade style of a person offering motor
vehicles, motorcycles, and trailers for sale unless such person is actually
engaged in the finance business and offering only bona fide repossessed motor
vehicles, motorcycles, and trailers. It shall be unlawful to use the word
Repossessed in the name or trade style of a firm in the advertising of motor
vehicles, motorcycles, and trailers sold by such a company unless they are
bona fide repossessions sold for unpaid balances due only. Advertisers offering
repossessed automobiles for sale shall be able to offer proof of repossession;
(13) To advertise the term Authorized Dealer in any way as to mislead
as to the make or makes of motor vehicles, motorcycles, or trailers for which
a dealer is franchised to sell at retail;
(14) To advertise or sell new motor vehicles, motorcycles, and trailers
by any person not enfranchised by the manufacturer of the motor vehicle, motorcycle,
or trailer offered without disclosing the fact in each advertisement which
includes the motor vehicle, motorcycle, or trailer, and in writing in the
lease or purchase agreement that the licensee or motor vehicle dealer is not
enfranchised by the manufacturer for service under factory warranty provisions.
No person shall transfer ownership of a motor vehicle by reassignment on a
manufacturer's statement of origin unless the person is enfranchised to do
so by the manufacturer of the motor vehicle;
(15) To advertise used motor vehicles, motorcycles, or trailers so as
to create the impression that they are new. Used motor vehicles, motorcycles,
and trailers of the current and preceding model year shall be clearly identified
as Used, Executive Driven, Demonstrator, or Driver Training, and lease cars,
taxicabs, fleet vehicles, police motor vehicles, or motorcycles as may be
the case and descriptions such as Low Mileage or Slightly Driven may also
be applied only when correct. The terms demonstrator's, executive's, and official's
motor vehicles, motorcycles, or trailers shall not be used unless (a) they
have never been sold to a member of the public, (b) such terms describe motor
vehicles, motorcycles, or trailers used by new motor vehicle, motorcycle,
or trailer dealers or their employees for demonstrating performance ability,
and (c) such vehicles are advertised for sale as such only by an authorized
dealer in the same make of motor vehicle, motorcycle, or trailer. Phrases
such as Last of the Remaining, Closeout, or Final Clearance and others of
similar import shall not be used in advertising used motor vehicles, motorcycles,
and trailers so as to convey the impression that the motor vehicles, motorcycles,
and trailers offered are holdover new motor vehicles, motorcycles, and trailers.
When new and used motor vehicles, motorcycles, and trailers of the current
and preceding model year are offered in the same advertisement, such offers
shall be clearly separated by description, layout, and art treatment;
(16) To advertise executives' or officials' motor vehicles, motorcycles,
or trailers unless they have been used exclusively by the personnel or executive
of the motor vehicle, motorcycle, or trailer manufacturer or by an executive
of any authorized dealer of the same make thereof and such motor vehicles,
motorcycles, and trailers have not been sold to a member of the public prior
to the appearance of the advertisement;
(17) To advertise motor vehicles, motorcycles, and trailers owned by
or in the possession of dealers without the name of the dealership or in any
other manner so as to convey the impression that they are being offered by
private parties;
(18) To advertise the term wholesale in connection with the retail offering
of used motor vehicles, motorcycles, and trailers;
(19) To advertise the terms auction or auction special and other terms
of similar import unless such terms are used in connection with motor vehicles,
motorcycles, and trailers offered or sold at a bona fide auction to the highest
bidder and under such other specific conditions as may be required in the Motor Vehicle Industry Regulation
Act;
(20) To advertise free driving trial unless it means a trial without
obligation of any kind and that the motor vehicle, motorcycle, or trailer
may be returned in the period specified without obligation or cost. A driving
trial advertised on a money back basis or with privilege of exchange or applying
money paid on another motor vehicle, motorcycle, or trailer shall be so explained.
Terms and conditions of driving trials, free or otherwise, shall be set forth
in writing for the customer;
(21) To advertise (a) the term Manufacturer's Warranty unless it is
used in advertising only in reference to cars covered by a bona fide factory
warranty for that particular make of motor vehicle, motorcycle, or trailer.
In the event only a portion of such warranty is remaining, then reference
to a warranty may be used only if stated that that unused portion of the warranty
is still in effect, (b) the term New Car Guarantee except in connection with
new motor vehicles, motorcycles, and trailers, and (c) the terms Ninety-day
Warranty, Fifty-fifty Guarantee, Three-hundred-mile Guarantee, and Six-month
Warranty, unless the major terms and exclusions are sufficiently described
in the advertisement;
(22) To advertise representations inconsistent with or contrary to the
fact that a motor vehicle, motorcycle, or trailer is sold as is and without
a guarantee. The customer contract shall clearly indicate when a car will
be sold with a guarantee and what that guarantee is and similarly shall clearly
indicate when a car is sold as is and without a guarantee; and
(23) To advertise or to make any statement, declaration, or representation
in any advertisement that cannot be substantiated in fact, and the burden
of proof of the factual basis for the statement, declaration, or representation
shall be on the licensee or motor vehicle dealer and not on the board.