purchase/lease of a vehicle, full disclosure of these charges, conditions, requirements or obligations must be made in the advertisement. Likewise, if there are other terms, conditions, or obligations that apply to the offer of free merchandise or services, those terms must be disclosed in close proximity to the claim. For example, if a consumer is required to mail a letter in order to claim a prize, this requirement must be disclosed in the advertisement. “Guaranteed” or “Minimum” Trade-in Offers Dealerships may not use terms such as “guaranteed trade-in,” “minimum trade-in” “Push, Pull, Drag,” “Push It, Pull It, Tow It,” or terms of similar import. Dealerships may not advertise a guaranteed minimum trade-in amount, because the consuming public believes that no matter the fair market value of the vehicle they bring in as a trade, they will receive the guaranteed amount and this guaranteed amount will be subtracted from the price of the vehicle they are purchasing. This is not the case, because the lowest price at which a dealer is prepared to sell the vehicle is increased to compensate the dealership for the loss it will incur for accepting a trade-in whose value is less than the offered guaranteed minimum. Vouchers and Coupons It is an unfair and deceptive practice to require consumers to reveal whether they will make use of a voucher or coupon that was disseminated by the dealership or a person acting on behalf of the dealership prior to negotiating the purchase price on a vehicle. The consuming public believes that the value as represented on the coupon or voucher will be deducted from the price of the vehicle to be purchased. However, this is not the case, because the lowest price at which a dealer is prepared to sell the vehicle is increased to compensate the dealership for the loss it will incur for accepting a coupon or voucher. Absorption of Sales Tax Georgia law generally prohibits anyone engaged in retail sales, such as automobile dealers, from advertising or representing, either directly or indirectly, that the retailer will absorb all or part of the sales tax or relieve the purchaser of the payment of that tax. The law does provide, however, an exception for retailers who want to make such a claim so long as they abide by two conditions. First, the retailer must include in the advertisement a statement that any portion of the tax not paid by the purchaser will be remitted by the retailer. Second, the retailer must give the purchaser written evidence showing the retailer will be liable for and pay the tax the consumer would otherwise be obligated to pay.18 A dealer who advertises it will cover or absorb a consumer’s sales tax without complying with these two requirements is in violation of this statute, as well as the Fair Business Practices Act. Credit Approval Claims It is this office’s position that terms such as “pre-approved” may be used only if the person to whom the offer is made has an unqualified right take advantage of it. There can be no conditions that a consumer must meet in order to take advantage of the offer, because “pre-approval” implies that a potential purchaser’s credit status has already been evaluated and found to be acceptable. Furthermore, offers of “pre-approval,” when used in conjunction with “an amount up to,” will be considered deceptive. It is, however, permissible to state that a consumer is pre- approved for a minimum amount. Discounts on Used Cars It is deceptive to compare used vehicle prices with the original Manufacturer’s Suggested Retail Price (MSRP) for the vehicles, because there is no MSRP for used cars. Advertisers may not state that consumers can save a specific percentage off of the MSRP, such as “up to 50 percent off.” False price comparisons on used vehicles, such as “was ____, now ____,” should not be used. It is a deceptive practice to compare a “sale” price to a reference price, unless the vehicle on sale and the nature of the reference prices are explicitly identified and the seller can substantiate the reference price. Therefore, references to a common source for vehicle values, such as N.A.D.A. prices may be used, only if the dealer can substantiate the reference price for the vehicle with the same features and mileage in the most recent edition of the pricing guide. Sellers should state the edition and pricing category. Example: May 2007 N.A.D.A. Official Used Car Guide, Southeastern Edition Retail Price: $12,996 [Dealer Name] Price: $11,995 18 GA. CODE ANN. § 48-8-36 (2007). 92 | 2025 MEMBERSHIP DIRECTORY
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