Virginia Advertising Dos and Donêts
The latest issue of Dealer Talk, published by the Virginia Motor Vehicle Dealer Board, offers the following “dos” and “don’ts” of dealer advertising based on regulations required by Virginia law:
àAdvertisements should not include a disclaimer such as “See Dealer for Details.” The “details” must be included in the advertisement in the disclaimer.
àAdvertising a dealer rebate is prohibited. If the dealer offers to make the customerês first monthly payment, that is considered a rebate. Similar offers where the dealer provides cash to the consumer or otherwise pays something toward the purchase of a vehicle are considered “rebates.”
àDisclaimers should not contradict or change the meaning of an advertised statement.
àThe Virginia Advertising Regulations state: “Advertisement of finance charges or other interest rates shall not be used when there is a cost to buy-down said charge or rate which is passed on, in whole or in part, to the purchaser.” Requiring the purchaser to pay additional money to “buy-down” an interest rate could also run afoul of the Truth-in-Lending Requirements if the APR does not include the additional money needed to receive the special rate.
àWhen you advertise a price for a vehicle, you must fully identify the year, make and model of the vehicle. For example. If you advertise “Cars for $5″ or Cars as low as $100,” then you must identify at least one vehicle at the stated price. The advertising regulations state that “When the price or credit terms of a vehicle are advertised in print, radio, or television, the vehicle should be fully identified as to year, make, and model.
A copy of all the Virginia “Motor Vehicle Dealer Advertising Practices and Enforcement Regulations” are available on the Dealer Boardês Web site, http://www.mvdb.vipnet.org/home.html (click Advertising), or call the MVDB office, (804) 367-1100 to receive a copy by mail or fax.
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