LEA KIRSCHNER PRESIDENT AND CEO, GADA PRESIDENT’S MESSAGE It seems dealer advertising is not only on my mind but on the minds of both federal and state regulators. Now would be an ideal time to review your advertising practices to make sure your dealership is playing by the rules. On the federal front, in March, the Federal Trade Commission sent 97 letters to auto groups nationwide, warning them that the prices they advertise must be the total price, including all fees. The FTC letters cited several examples of illegal pricing practices, including: • advertising a price that does not reflect all required fees, • advertising a price that reflects rebates or discounts not available to all consumers, • advertising a price that fails to account for an additional required down payment, • conditioning the advertised price on consumers using dealer financing, • requiring consumers to buy additional items not reflected in the advertised price, and • advertising unavailable or non-existent vehicles. In addition to activity on the federal level, GADA is aware of and has reported on increased enforcement by the Georgia Attorney General’s Consumer Protection Division (GACPD). The message is clear: Dealers need to review and maintain compliance with advertising rules. Scan the QR code to download and review Georgia’s Auto Advertising and Sales Practices Enforcement Policies. https://consumer.georgia.gov/ business-services/autoadvertising-and-sales-practicesenforcement-policies There are two very important points to note about auto advertising. First, “advertising” means ALL forms of advertising, including, but not limited to, print, radio, television, electronic, direct mail, flyers, billboards, showroom displays, lot displays and the internet. Basically, if you wouldn’t put the advertisement in the newspaper for fear of a violation, don’t try it elsewhere. Second, regarding the GACPD’s enforcement powers: “It is not a defense… that others were, are or will be engaged in like practices.” In plain English, you will not be able to defend yourself by saying that other dealers are advertising the same way. Although the recent FTC interpretation that all non-government fees must be included in the advertised price might have come as a surprise to some, this has been the law of the land here in Georgia for some time. Advertised MindON MY THE GENERATOR 4
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