RULES OF THE ARKANSAS MOTOR VEHICLE COMMISSION 2.22 The Executive Director shall, as and when directed by the Commission, issue such subpoenas as requested by the parties involved, or as the Commission may designate, to bring before the Commission any person to this State to give testimony under oath, and to compel production of records and documents relative to matters to be investigated, or considered or heard by the Commission. 2.23 Alternate Proceedings: Prior to proceeding to a formal adjudicative hearing as provided for in Rule 2, 2.1 to 2.22, the case will be reviewed by an ad hoc committee to determine whether summary proceedings should be invoked. Members of the Committee shall be Chair, Executive Director and Counsel. If the Committee determines that the violation(s), if proved, would not warrant license suspension, revocation or a fine in an amount greater than five thousand dollars ($5,000), the Committee may recommend that the complaint be handled in a summary manner. This decision will be referred to the Commission for their acceptance or rejection. If the Commission decides to utilize alternative proceedings, the Respondent will be notified by mail that the Commission has learned that he or she has engaged in actions which violate the licensing law and that it is recommended that under all circumstances the appropriate sanction is a fine of five thousand dollars ($5,000) or less. This Notice will further inform the Respondent that he or she has a right to reject the proposed fine and have a full evidentiary hearing. The Respondent will be provided with a formal document on which he or she will admit or deny that he or she had violated the Licensing Law and accept or reject the proposed penalty. The Respondent will indicate that he or she understand that he or she has a right to a full evidentiary hearing before the Commission and he or she elects not to exercise that right. RULE 3 ADVERTISING OBJECTIVE Rule 3 implements the Legislative intent of the law governing advertising as stated in the Arkansas Motor Vehicle Commission Act. False and misleading advertising will be defined and prohibited in a unified effort to insure truthful and accurate product advertising that will benefit the consumers and businesses of this State affected by legislation. Certain key examples of prohibited advertising will be exhibited, but shall not be construed as an allinclusive exhibit of prohibited practices. The Commission has been granted the authority to review all advertising pertaining to new and used motor vehicles. The Commission will review each advertisement for misleading and deceptive practices and will govern them accordingly. (a) Rule 3 establishes standards of practices which set forth certain basic principles in advertising the sale and lease of new and used motor vehicles. These standards apply to advertisements both in the print and electronic media. (b) The primary responsibility for truthful and non-deceptive advertising rests with the advertising dealer. Advertising dealers must be prepared to substantiate any or all offers made before publication or broadcast, and upon request, present such substantiation. (c) Rule 3 does not apply to any radio or television broadcasting station, or any publisher, printer, distributor or owner, of any newspaper or magazine, billboard or other advertising medium, or any owner, operator, agent or employee of any advertising agency or other business engaged in preparing or disseminating advertising for public consumption on behalf, of any other person when the advertising is in good faith and he is without knowledge of its untrue, deceptive or misleading character. (d) It shall be the DEALER’S RESPONSIBILITY to provide a copy of Rule 3 to any advertising agent or agency or other business engaged in preparing or disseminating advertisements for the dealer, including outside web page designers or web page design firms; and each employee assigned to preparing or disseminating advertisements for the dealer. (e) Violation of any Advertising Rule(s) by any licensee shall be considered a prima facie violation of A.C.A. § 23-112-402(3) or A.C.A. § 23-112-403(a)(2)(D). (f) The Commission will monitor and evaluate each dealer’s advertisement regarding its compliance with laws and rules. The advertising sections activities include, but are not limited to: 1. Review of advertisements in any medium. 2. Review all complaints as received. 3. Answer advertisement inquiries. 4. Address advertising violations. 1. DEFINITIONS: A. “Advertisement and or advertising” means any oral, written, telecommunicated, graphic, pictorial or other statement made in the course of soliciting business, including without limitation a statement or representation made in a newspaper, magazine, Internet, or other publication or contained or appearing in or on a notice, sign, poster, display, circular, pamphlet, letter, flyer, price tag, window sticker, banner, billboard, handbill, radio, television, web page, or any other medium. B. “Bait and switch” means an alluring but insincere offer to switch consumers from buying the advertised motor vehicle, in order to sell or lease a different motor vehicle on terms more advantageous to the advertiser. C. “Clear and conspicuous” means that the statement, representation, or term being used is of such size, color, contrast, audibility and is presented so as to be readily noticed, understood and nondeceptive. All language and terms, including abbreviations, shall be used in accordance with their common or ordinary usage and meaning by the general public. D. “Dealer discount” means an amount of reduction or contribution by the dealer to reduce the selling price of the vehicle from “MSRP”. E. “Dealership addendum” an equipment list displayed on a window of a motor vehicle when the dealership installs special features, equipment, parts or accessories, or charges for service not already compensated by the manufacturer or distributor for work required to prepare a vehicle for delivery to a buyer. F. “Disclaimer” means those words or phrases used to provide a clear understanding of an advertised statement, but not used to contradict or change the meaning of the statement. G. “Disclosure” means required information that is clear, conspicuous, and accurate shall be in the immediate proximity of the year, make and model offered in the advertisement or stated at a clear and concise level in broadcast mediums. H. “Dealer Service and Handling Fees” means a fee that a dealer may charge in connection with the sale or lease of a new or used motor vehicle for handling, processing, and storage of documents and other administrative and clerical services. I. “Incentive” means anything of value offered as an inducement directly or indirectly towards the purchase of a vehicle, including but not limited to, discounts, savings claims, and other dealer programs, but not including factory rebates. J. “Limited rebate” means rebates not available to all consumers and is defined as any payment of money to a consumer, or any payment to a dealer or third party on behalf of a consumer, and that is confined, or restricted, to a certain class of consumers, including, but not limited to, on the basis of the consumer’s status, sponsorship, affiliation, or association. K. “Line make” means a group or series of motor vehicles that have the same brand identification or brand name, based upon the manufacturer’s trademark, trade name or logo. L. “List” or “Sticker” price when used in a new motor vehicle advertisement refers only to the Manufacturer’s Suggested Retail Price (Monroney Sticker or “MSRP”). M. “Manufacturer label” means the label required by the Federal Automobile Information Disclosure Act, 15 U.S.C. Sections 12311233 (normally referred to as Monroney Label), to be affixed by the manufacturer to the windshield or side window of each new automobile delivered to a dealer. N. “MSRP,” or “Manufacturer Suggested Retail Price,” means the “list price” shown on the window sticker or “Monroney Label” and is the manufacturer’s baseline price for that vehicle. “Dealership addendums” or “temporary factory value packages” are not a part of “MSRP”. O. “Rebate” means the payment of money from the manufacturer to a consumer, or payment to a dealer or third party on behalf of a consumer on the condition that the consumer purchases or leases a new motor vehicle. Arkansas Automobile Dealers Association | 45
RkJQdWJsaXNoZXIy ODQxMjUw