Pub 5. 2015 Issue 3

8 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com Dealer Advertising In Illinois – Overview of Compliance with Motor Vehicle Advertising Regulations COUNSELOR’S CORNER O ver the past year, the Federal Trade Commission has conducted nationwide enforcement, focusing on the sale, financing and leasing of advertised motor vehicles. In these actions, the dealers allegedly made misrepresenta- tions in print, internet, and broadcast advertisements that violated the FTC Act, falsely leading consumers to believe they could purchase vehicles for low prices, finance vehicles with low monthly payments, and/or make no upfront payments. Purchasing or leasing a vehicle is often one of the single larg- est consumer transactions a person makes. Ads are an important source of information for discerning customers. If dealers’ ads do not comply with applicable laws, federal and state agencies charged with enforcing those laws will take action. This has occurred not only at the federal level, but also at the state level. The Illinois Attorney General’s Office is charged with enforc- ing the State’s consumer protection laws including the Illinois Motor Vehicle Advertising Regulations (MVAR). Some areas where there may be a higher incidence of compliance problems in dealer advertising include the following, however, this list is not exhaustive: Limited Availability Rebates. The MVAR (14 Ill. Admin. Code 475.530 & 475.310) prohibit advertising a price or payment from which limited availability rebates have been deducted. Dealers should pay close attention to their advertising claims to ensure legal compliance. Advertising compliance problems can adversely affect the dealership’s profit potential, with compliance costs and other expenses, including fines and penalties. BY JULIE A.CARDOSI, LAW OFFICE OF JULIE A. CARDOSI, P.C.