Pub. 2 2023-2024 Directory

www.GADA.com | 97 Dealer Installed Options The practice of adding on costs for rustproofing, alarms, gas and glaze packages, undercoating, glass etching, and other similar services is an unfair and deceptive practice when: 1. A required or mandatory option the price of which is discussed after a final purchase or lease amount has been reached; 2. When the cost for the service is listed below the final purchase or lease amount, which gives the appearance of a standard, pre-printed cost; 3. When the dealer represents to the purchaser that a specific price was paid by the dealership for the option or service, when, in fact the price is inflated and is used to justify the cost to the purchaser; or 4. When a dealer fails to perform the service adequately despite receiving payment for it. Duration of Offers The duration of a sale or advertised offer shall be until the next advertisement is published. Otherwise, if any time or date limitations apply, the duration of the sale or advertised offer must be accurately disclosed in the advertisement. Extra caution is recommended for self-renewing advertisements, such as Internet classifieds. Monroney Sticker When a dealership is offering to sell a vehicle for which a federal Monroney sticker is required, it is deceptive to charge or attempt to charge more than the Manufacturer’s Suggested Retail Price, unless the dealer’s asking price or supplemental price is clearly and conspicuously disclosed on a supplemental sticker adjacent to the Monroney sticker. It is deceptive for a dealership to misrepresent or conceal the reasons for additional charges listed on a supplemental sticker (e.g., using abbreviations, such as “ADP” for “Additional Dealer Profit,” which conceal the actual reason for the additional charge). Unique/Special Sales Events It is a violation of the Fair Business Practices Act to represent or imply in any advertisement that the dealership is selling or leasing vehicles in a manner that differs from the regular business practice, when such is not the case. “Unique sales event” representations lead consumers to infer that they will receive special deals or pay less to purchase or lease a vehicle than they otherwise would. By way of illustration, examples of representations of special sales events include, but are not limited to: 1. Pre-auction Sales The dealership must be able to show that vehicles that were available for sale during the sales event, but were not purchased, were then sent off to auction. The term “pre‑auction sale” implies that consumers will receive a bargain price on a vehicle. 2. Verified/Certified Events The dealership must be able to substantiate that the vehicles were verified or certified, the credentials of the entity that verified/certified the vehicles prior to sale, and the criteria that must be met in order for vehicles to be verified/certified. 3. Seized Vehicle Events The term “seized” usually implies that the goods being sold were confiscated from the prior owner by a law enforcement agency or other government entity. Dealerships should avoid using this term in advertisements. 4. Repossessed Vehicle Sales Events The dealership must be able to substantiate that it had a significant number of “repossessed” vehicles available for sale to the consuming public. Vehicles purchased at auction, regardless of whether they were repossessed prior to being sold at auction, may not be advertised as “repossessed.” 5. Reprocessed Vehicle Sales Events This term is intended to confuse or mislead the public into believing that repossessed vehicles are being sold and its use will be considered an unfair and deceptive practice. 6. Representing that a sale is Endorsed by the Government The dealership may not utilize, in connection with advertisements, official government

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