Section R877-23V-7 - Misleading Advertising Pursuant to Utah Code Ann. Section 41-3-210(1)(a) "Advertisement" means any oral, written, graphic, or pictorial statement made that concerns the offering of a motor vehicle for sale or lease.(b) "Advertisement" includes any statement or representation: (i) made in a newspaper, magazine, electronic medium, or other publication;(ii) made on radio or television;(iii) appearing in any notice, handbill, sign, billboard, banner, poster, display, circular, pamphlet, letter, or other printed material;(iv) contained in any window sticker or price tag; or(v) in any oral statement.(c) "Advertisement" includes the terms "advertise" and "advertising".(d) "Advertisement" does not include: (i) a statement made solely for obtaining motor vehicle financing or a motor vehicle title; or(ii) hand written negotiation sheets between a dealer and a customer of the dealer.(2) Violation of this section constitutes a violation of licensing prohibitions and requirements under Section 41-3-210. (a) Accuracy. Any advertised statements and offers about a motor vehicle as to year, make, model, type, condition, equipment, price, trade-in-allowance, terms, or other similar information, shall be clearly set forth and based upon facts.(b) Bait. Bait advertising and bait and switch selling practices may not be used.(i) Except as provided in Subsections (2)(b)(ii) and (iii), a motor vehicle advertised at a specific price shall be in the possession of the advertiser at the address given.(ii) A new motor vehicle that is in transit to the advertiser at the address given, is considered in the possession of the advertiser if the advertiser is a dealer of that make of new motor vehicle.(iii) A used motor vehicle that is in transit to the advertiser at the address given, is considered in the possession of the advertiser if the advertiser produces, upon request by any employee of the division, proof of purchase for the advertised vehicle establishing a date of purchase before the date of the advertisement.(iv)(A) An advertised vehicle shall be willingly shown, demonstrated, and sold.(B) If an advertised vehicle is sold, the advertiser shall, upon request of any prospective purchaser, peace officer, or employee of the division, show sales records of the advertised motor vehicle.(v) If an advertisement contains a picture of a motor vehicle and a price, the motor vehicle pictured shall be a similar model with similar options and accessories as the advertised motor vehicle.(c)(i) Price. If the price or payment of a motor vehicle is quoted, the motor vehicle shall be clearly identified as to make, year, model, and if new or used.(ii) Except as provided in Subsection (c)(i)(iii), the advertised price of a motor vehicle shall include charges that the customer shall pay for the motor vehicle, including any charges for freight, destination, dealer preparation, dealer handling, or any non-optional items installed on the vehicle at the time of the advertisement.(iii) The following amounts are not required to be included in the advertised price that the customer shall pay for the motor vehicle:(A) dealer documentary service fees;(B) if optional, charges for undercoating, rustproofing, window etching, window tint, an alarm system, or any other similar item;(C) taxes or fees required by the state, a county, or a local jurisdiction, including sales and use taxes, titling and registration fees, safety and emission fees, and waste tire recycling fees or;(D) temporary permit fees.(iv) If "list", "sticker", or similar words are used in an advertisement, the words may refer only to the manufacturer's suggested retail price.(v) If a supplementary price sticker is used, the advertised price shall include all items listed on the supplementary sticker.(d) Savings and Discount Claims. Because the intrinsic value of a used motor vehicle is difficult to establish, specific claims of savings may not be used in an advertisement. This includes statements such as, "Was priced at $ ....., now priced at $ ..... (i) The word "wholesale" may not be used in retail motor vehicle advertising.(ii) When a motor vehicle advertisement contains an offer of a discount on a new motor vehicle, the amount of the discount must be stated by reference to the manufacturer's suggested retail price of the motor vehicle.(e)(i) Down Payments. The amount of the down payment may not be stated in a manner that suggests that the down payment is the selling price of the motor vehicle.(ii) If an advertisement states "You can buy with no money down", or uses similar language, the customer must be able to leave the dealership with the motor vehicle without paying any money.(f) Trade-in Allowance.(i) A specific trade-in amount or range of trade-in amounts may not be used in advertising.(ii) An advertiser may not assert that a trade-in will be paid off regardless of what is owed on the vehicle.(g)(i)(A) Finance. The phrases, "no finance charge", "no carrying charge", or similar expressions may not be used if there is a charge for placing a transaction on a time payment basis.(B) A statement representing or implying that no prospective credit purchaser will be rejected because of inability to qualify for credit, such as "we accept all credit applications," may not be used.(ii) If the amount of the advertised payment changes during the term of the loan, both the payments and the terms of the loan shall be disclosed together.(h)(i) Unpaid Balance and Repossessions. The term "repossessed" may only be used to describe a motor vehicle that has actually been repossessed.(ii) The division may require an advertiser that offers a repossessed motor vehicle for sale to provide proof that the motor vehicle was repossessed.(iii) The unpaid balance shall be the full selling price unless otherwise stated.(i) Current Used. If a used motor vehicle, as defined by Section 41-3-102 is advertised, the first line of the advertisement shall:(ii) contain the term "used," "pre-owned," "certified used," "certified pre-owned," or other similar term used to designate a used motor vehicle; or(iii) clearly indicate that the motor vehicle offered is used.(j) Demonstrator, executive's, or official's motor vehicle.(i)(A) "Demonstrator motor vehicle" means a motor vehicle used by a new motor vehicle dealer or personnel of a new motor vehicle dealer for demonstrating performance ability.(B) "Demonstrator motor vehicle" does not include a motor vehicle that:(I) has previously been sold or leased to a member of the public; or(II) is purchased or leased for personal use.(ii)(A) "Executive's motor vehicle" or "official's motor vehicle" means a motor vehicle that has been used exclusively by an executive or official of the dealer's franchising manufacturer or distributor, or by an executive or official of the franchised dealership.(B) "Executive's motor vehicle" or "official's motor vehicle" does not include a motor vehicle that: (I) has previously been sold or leased to a member of the public; or(II) is purchased or leased for personal use.(iii) A demonstrator motor vehicle, executive's motor vehicle, or official's motor vehicle: (A) may only be advertised for sale by a dealer who is franchised for the sale of that make of new motor vehicle; and(B) shall be clearly and prominently advertised as a demonstrator motor vehicle, executive's motor vehicle, or official's motor vehicle. (k) Mileage Statements. If an advertisement quotes the number of miles or a range of miles a motor vehicle has been driven, the dealer shall:(i) have a properly completed odometer disclosure statement evidencing that the motor vehicle has not been operated in excess of the advertised mileage at the time of the advertisement; and(ii) upon request of any prospective purchaser, peace officer, or employee of the division produce all documents in its possession pertaining to that motor vehicle so that the mileage may be readily verified.(l)(i) Underselling Claims. Underselling claims include: (A) "our prices are guaranteed lower than elsewhere";(B) "money refunded if you can duplicate our values";(C) "we guarantee to sell for less";(E) "we purchase motor vehicles for less so we can sell them for less";(F) "highest trade-in allowance";(G) "we give more in trade than any other dealers"; or(H) a claim similar to Subsections (2)(l)(i)(A) through (G). (ii) Unsupported underselling claims may not be used.(iii) Evidence of supported underselling claims shall:(A) be contained in the advertisement; and(B) be produced upon request of a prospective purchaser, peace officer, or employee of the division.(m) Free. The term "Free" or words of similar meaning, may be used in advertising only if the advertiser is offering a gift that is not conditional on the purchase of any item of tangible personal property or service.(n)(i) Driving Trial. "Driving trial" means an offer to allow a customer to drive a motor vehicle during a trial period and return the motor vehicle to the dealer at the conclusion of the trial period.(ii) If a motor vehicle dealer offers a driving trial, the offer shall:(B) contain the terms and conditions of the offer;(C) be provided to the customer before the customer takes possession of the motor vehicle that is subject to the driving trial;(D) provide for the cancellation and return of signed agreements;(E) provide for the refund of any money or other consideration paid to participate in the driving trial, unless the offer provides otherwise in writing; and(F) provide for the return of the motor vehicle that was driven during the driving trial and for the return of the customer's vehicle.(o)(i) Guarantee or warranty. An advertisement that uses a term such as "guarantee," "warranty," or other similar term implying protection, shall include an explanation of each term and coverage of the guarantee or warranty including the time period of coverage of the guarantee or warranty, in clear and concise language.(ii) A motor vehicle dealer shall provide a purchaser with a written document stating the specific terms and coverage of a guarantee or warranty, including the time period of coverage of the guarantee or warranty.(p) Name Your Own Deal. Statements including "write your own deal," "name your own price," "name your own monthly payments," "appraise your own motor vehicle," or similar statements may not be used.(q)(i) Disclosure of Material Facts. A disclosure of material fact that is contained in an advertisement and that involves a type of motor vehicle or motor vehicle transaction shall be made in a clear and conspicuous manner.(ii) A disclosure under Subsection (2)(q)(i) may not include:(C) font or font size smaller than the smallest font or font size of the text used throughout the body of the advertisement; or(D) use of an asterisks or other reference symbol to give additional information if the additional information contradicts or substantially changes the meaning of the advertised statements.(iii) The speed of the words spoken in any verbal advertisement shall be constant throughout the advertisement.(r)(i) Lease. If an advertisement relates to a lease, the advertisement shall clearly state that the transaction advertised involves a lease.(ii) For purposes of this Subsection (2)(r), the term "lease" shall be used and shall appear in a prominent position in the advertisement in a font and font size as large as the largest text used to directly advertise the motor vehicle.(iii) A lease advertisement may not contain the phrase "no down payment" or use a similar phrase if any payment is required to lease the motor vehicle.(iv) Lease terms that are not available to the general public may not be included in an advertisement directed at the general public.(v) Limitations and qualifications applicable to the lease terms advertised shall be clearly and conspicuously disclosed.(s) Electronic Medium Disclosures. A disclosure appearing in any electronic advertising medium shall clearly and conspicuously feature all necessary information in a manner that may be read and understood if type is used, or that may be heard and understood if audio is used.(t) Invoice or Cost. The terms "invoice" or "factory invoice" may be used if the dealer is willing to show the factory invoice to the prospective buyer. The term "cost" may not be used.(u) Rebate Offers. "Rebate", "cash rebate," or similar terms may be used only if it is clearly and conspicuously stated who is offering the rebate.(v) Buy-down Interest Rates. A buy-down interest rate may not be advertised unless the dealer discloses the amount of dealer contribution and states that the contribution by the dealership may increase the negotiated price of the motor vehicle.(w) Special Status of Dealership. A motor vehicle advertisement may not falsely imply that the dealer has a special sponsorship, approval status, affiliation, or connection with the manufacturer that is greater or more direct than any other like dealer.(x)(i) Price Equaling. An advertisement that expresses a policy of matching or bettering a competitor's price shall fully disclose any conditions that apply and specify the evidence a consumer shall present to take advantage of the offer.(ii) The evidence described in Subsection (2)(x)(i), may not place an unreasonable burden on a consumer.(iii) It is not considered to be an unreasonable burden on a consumer to require the consumer to bring a written offer made to that consumer by an authorized representative of a dealership on a substantially similar motor vehicle. (y) Auction. "Auction," "auction special," or other similar terms may be used only in connection with a motor vehicle offered or sold at a bona fide auction.(z) Layout and Type Size. The layout, headlines, illustrations, or font size of a printed advertisement and the broadcast words or pictures of radio, television, or electronic medium advertisements may not convey or permit an erroneous or misleading impression as to a motor vehicle offered at a featured price. (aa)(i) "Clearly, conspicuously, and accurately" means:(A) in bold print and in a font size that is capable of being read without unreasonable effort;(B) in terms that are understandable to the buying public; and(C) printed close to the qualified representation and not separated or buried by an asterisk in some other part of the advertisement.(ii) An advertisement of the following may not be misleading and any necessary qualifications shall be clearly, conspicuously, and accurately stated to prevent misunderstanding: (F) a trade-in allowance;(I) a term similar to Subsections (2)(aa)(i)(A) through (H). (bb)(i) An advertisement shall disclose if a vehicle has a branded title or salvage certificate.(ii) The disclosure described in Subsection (2)(bb)(i) shall be made by inserting the terms "salvage certificate" or "branded title," as appropriate: (A) immediately following the year, make, and model of the advertised vehicle; and(B) in the same font and font size as is used to advertise the year, make, and model of the vehicle.Utah Admin. Code R877-23V-7
Amended by Utah State Bulletin Number 2015-22, effective 10/22/2015Amended by Utah State Bulletin Number 2023-04, effective 2/9/2023