Idaho Admin. Code r. 04.02.01.233

Current through September 2, 2024

Section 04.02.01.233 - PRICE ADVERTISING

It is an unfair and deceptive act or practice for a dealer to:

01.Advertised Price. Advertise the price of a motor vehicle without including in the advertised price all costs to the consumer at the time of sale, or which are necessary or usual prior to delivery of such vehicle to the consumer, including without limitation, any costs of freight, delivery, dealer preparation, and any other charges of any nature; provided, however, the following may be excluded from the advertised price of the motor vehicle:

a. Taxes, license, and title fees; and

b. A dealer documentation service fee, as defined herein, so long as the advertisement clearly and conspicuously discloses, in close proximity to the advertised price, the amount of such fee and that the fee is a dealer imposed fee; i.e. PRICE DOES NOT INCLUDE $_____(insert actual amount charged for dealer documentation service fee) DEALER DOC FEE.

02.Advertising Limitations. Fail to clearly and conspicuously disclose in an advertisement any material limitations including, but not limited to:

a. The number of motor vehicles in stock subject to the offer if the number is not likely to meet reasonably expected public demand;

b. The period of time during which the offer is in effect, if the offer is subject to a time limitation of fourteen (14) days or less or when an offer is within fourteen (14) days of its close; and

c. Any other applicable restrictions to which the advertised price may be subject.

03.Low Prices. Use the term "low prices" or words of similar meaning or import in the advertisement, unless the prices offered are lower than those usually offered by the dealer or other dealers in the same trade area.

04.Lowest Prices, Guaranteed Lowest Prices. Advertise that motor vehicles cost less in a particular community or geographic area or use the terms "lowest prices," "guaranteed lowest prices," "prices lower than anyone else," "nobody can beat our prices," or words of similar meaning or import in the advertisement, unless the dealer, or dealer association in the case of cooperative dealer advertising, systematically monitors and continues to monitor competitive prices in the trade area and can substantiate such claims.

05.Price Matching. Use terms "meet your best offer," or "we won't be undersold," or terms of similar meaning or import which suggest that a dealer will beat or match a competitor's price unless:

a. The advertisement clearly and conspicuously discloses the dealer's price matching policy and any limitations; and

b. Such policy does not require the presentation of any evidence which places an unreasonable burden on the consumer.

06.Dealer's Cost. Except as required in CPR 233.07.a., advertise a motor vehicle using any reference to the term "dealer's cost," or that a motor vehicle is available for purchase at, above or below "cost."

07.Invoice Pricing. Advertise that a motor vehicle is available for purchase at an amount below, at, or above "factory invoice," "factory billing," "manufacturer's invoice," or terms of similar meaning or import, unless:

a. The advertisement uses the terms "factory invoice," "manufacturer's invoice," or other terms that clearly convey that the invoice referred to is the factory or manufacturer's invoice;

b. The advertised reference to factory or manufacturer's invoice price shall be the final price listed on the factory or manufacturer's invoice;

c. The following disclosure is clearly and conspicuously disclosed in the advertisement: "FACTORY INVOICE MAY NOT REFLECT DEALER'S ACTUAL COST"; and

d. The original factory or manufacturer's invoice, or a true and correct copy thereof, shall be readily available at the place of business for inspection by prospective customers.

08.Vehicle Availability. Subject to CPR 233.01 and CPR 233.02, fail to allow consumers to purchase all motor vehicles described by the advertisement at the advertised price. If some motor vehicles in stock may not be purchased at the advertised prices, the advertisement shall clearly and conspicuously disclose that the advertised price applies only to a specified number of motor vehicles. Vehicle identification numbers for any motor vehicle advertised for sale by a dealer shall be readily available at the dealer's place of business for inspection by customers.

09.Buy-Down Rate. Advertise the sale of any motor vehicle at a "buy-down" rate, as that term is defined herein, without clearly and conspicuously disclosing in the advertisement the following: "BELOW MARKET RATE MAY AFFECT PURCHASE PRICE OF CAR."

10.Hidden Finance Charges. Fail to include hidden finance charges (i.e. the difference, if any, between the cash and credit price of a "buy-down" motor vehicle) in the Truth in Lending calculation and disclosure requirements.

Idaho Admin. Code r. 04.02.01.233

Effective March 31, 2022