Advertising, License and Dealer Practices Issues Top VA Dealer Board Agenda

At its July 11, 2005 bi-monthly meeting, the Virginia Motor Vehicle Dealer Board covered the following important issues:

à Dealer Practices. MVDB reviewed three cases involving sales by unlicensed salespeople, which led to civil penalties against the dealers involved. Dealers are reminded that almost all such cases involving unlicensed sales people that MVDB has reviewed resulted in a levy of civil penalties. Dealers must be sure that they have in place procedures to insure that their sales people are licensed before they handle sales of vehicles. Prior to the license being issued, an applicant for a license must work under the supervision of a licensed sales person who is responsible for engaging in the sale process.

à Advertising. MVDB also dealt harshly with a dealer who it felt had engaged in –bait” advertising. In this case, MVDB felt strongly about a dealer advertising a vehicle which was available only by order, and the advertisement not being clear as to that requirement. Dealers are reminded that in advertising a vehicle at a price the dealer must either identify the stock number of the vehicle available at that price or the number of vehicles available at that price. And those vehicles must actually be available for sale. If a customer complains that the vehicles were not available for sale, MVDB will seek proof that the vehicles were available for sale and actually sold prior to the attempt of the complainant to purchase the vehicle.

à Dealer Operator Licenses. MVDB reviewed progress on implementing the new legislation requiring that new independent dealer-operator applicants complete a course of study before they can earn a dealer-operatorês certificate of qualification. MVDB is moving to revise the test and to identify providers for this course of study.

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