2006 Code of Virginia § 46.2-1993.81 - Regulated advertising practices

46.2-1993.81. Regulated advertising practices.

For purposes of this chapter, a violation of the following regulatedadvertising practices shall be an unfair, deceptive, or misleading act orpractice.

1. A motorcycle shall not be advertised as new, either by word orimplication, unless it is one which conforms to the requirements of 46.2-1993.

2. When advertising any motor vehicle which does not conform to thedefinition of "new" as provided in 46.2-1993, the fact that it is usedshall be clearly and unequivocally expressed by the term "used" or by suchother term as is commonly understood to mean that the motor vehicle is used.By way of example but not by limitation, "special purchase" by itself isnot a satisfactory disclosure; however, such terms as "demonstrator" or"former leased vehicles" used alone clearly express that the vehicles areused for advertising purposes.

3. Advertisement of finance charges or other interest rates shall not be usedwhen there is a cost to buy-down said charge or rate which is passed on, inwhole or in part, to the purchaser.

4. Terms, conditions, and disclaimers shall be stated clearly andconspicuously. An asterisk or other reference symbol may be used to point toa disclaimer or other information, but shall not be used as a means ofcontradicting or changing the meaning of an advertised statement.

5. The expiration date of an advertised sale shall be clearly andconspicuously disclosed.

6. The term "list price," "sticker price," or "suggested retail price"and similar terms, shall be used only in reference to the manufacturer'ssuggested retail price for new motorcycles or the dealer's own usual andcustomary price for used motorcycles.

7. Terms such as "at cost," "below cost," "$ off cost" shall not beused in advertisements because of the difficulty in determining a dealer'sactual net cost at the time of the sale. Terms such as "invoice price," "$over invoice," may be used, provided that the invoice referred to is themanufacturer's factory invoice or a bona fide bill of sale and the invoice orbill of sale is available for customer inspection.

"Manufacturer's factory invoice" means that document supplied by themanufacturer to the dealer listing the manufacturer's charge to the dealerbefore any deduction for holdback, group advertising, factory incentives orrebates, or any governmental charges.

8. When the price or credit terms of a motorcycle are advertised, themotorcycle shall be fully identified as to year, make, and model. Inaddition, in advertisements placed by individual dealers and not line-makemarketing groups, the stated price or credit terms shall include all chargeswhich the buyer must pay to the seller, except buyer-selected options, stateand local fees and taxes, and manufacturer's or distributor's freight ordestination charges. If freight or destination charges are not included inthe advertised price, the amount of any such freight or destination chargemust be clearly and conspicuously disclosed.

9. Advertisements which set out a policy of matching or betteringcompetitors' prices shall not be used unless the terms of the offer arespecific, verifiable and reasonable.

10. Advertisements of "dealer rebates" shall not be used. This does notaffect advertisement of manufacturer rebates.

11. "Free," "at no cost," or other words to that effect shall not be usedunless the "free" item, merchandise, or service is available without apurchase. This provision shall not apply to advertising placed bymanufacturers, distributors, or line-make marketing groups.

12. "Bait" advertising, in which an advertiser may have no intention tosell at the price or terms advertised, shall not be used. By way of example,but not by limitation:

a. If a specific motorcycle is advertised, the seller shall be in possessionof a reasonable supply of said motorcycles, and they shall be available atthe advertised price. If the advertised motorcycle is available only inlimited numbers or only by order, that shall be stated in the advertisement.For purposes of this subdivision, the listing of a motorcycle by stock numberor vehicle identification number in the advertisement for a used motorcycleis one means of satisfactorily disclosing a limitation of availability. Stocknumbers or vehicle identification numbers shall not be used in advertising anew motorcycle unless the advertisement clearly and conspicuously disclosesthat it relates to only one motorcycle;

b. Advertising a motorcycle at a certain price, including "as low as"statements, but having available for sale only motorcycles equipped withdealer added cost "options" which increase the selling price, above theadvertised price, shall also be considered "bait" advertising;

c. If a lease payment is advertised, the fact that it is a lease arrangementshall be disclosed.

13. The term "repossessed" shall be used only to describe motorcycles thathave been sold, registered, titled and then taken back from a purchaser andnot yet resold to an ultimate user. Advertisers offering repossessedmotorcycles for sale shall provide proof of repossession upon request.

14. Words such as "finance" or "loan" shall not be used in a motorcycleadvertiser's firm name or trade name, unless that person is actually engagedin the financing of motorcycles.

15. Any advertisement which gives the impression a dealer has a specialarrangement or relationship with the distributor or manufacturer, as comparedto similarly situated dealers, shall not be used.

(1996, cc. 1043, 1052.)