www.GADA.com | 99 Georgia license number of the auctioneer is listed in the advertisement and an auction of vehicles actually occurs.16 Use of the Word “Free” The word “free” should not be used in connection with the purchase or lease of a vehicle or related product or service whose price is arrived at through bargaining. The same representation is also improper where there may be a regular price, but where other material factors such as quantity, quality, or size are arrived at through bargaining. Whenever a consumer is required to purchase or lease any goods or services in order to receive a second offered item, and it is represented in an advertisement that the second item is “free,” then the consumer cannot be charged for that item. When the purchaser is told that an item is “free” to him if another article is purchased, the word “free” indicates that he is paying nothing for that article and no more than the regular price for the other. Thus, a purchaser has a right to believe that the merchant will not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.17 Use of the words “gifts,” “given at no charge,” “bonus,” “complimentary,” or other similar terms which tend to convey the impression that an item is free are also subject to the above guidelines and relevant FTC Rules. In a promotion dealing with the provision of any product that requires a subscription or an additional requirement or commitment to purchase monthly service, such as a cellular telephone, with the 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. 16 See, GA. CODE ANN. § 43-6-9 (2007). 17 Guide Concerning Use of the Word ‘Free’ and Similar Representations, 16 C.F.R. § 251 (2007). 18 GA. CODE ANN. § 48-8-36 (2007).
RkJQdWJsaXNoZXIy MTg3NDExNQ==