Pub. 8 2018 Issue 4

8 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com COUNSELOR’SCORNER Importance of Dealership Compliance with State and Federal Advertising Laws D ealer advertising of vehicles, products and other services is a significant part of a dealership’s overall business opera- tions and can consume a sizeable portion of its operating budget. In addition to a dealership’s fundamental obligation to lawfully advertise, the foregoing business reasons should provide ample justification for a dealership to ensure compliance. Compliance, however, can be challenging because dealer advertising is extensively regulated at both the state and federal levels. Advertising is also frequently scrutinized by law enforcement, regulators, and customers. This article will discuss the importance of the Illinois dealers’ compliance obligation under Illinois law, which includes without limitation, the Illinois Motor Vehicle Advertising Regulations and the Illinois Consumer Fraud and Deceptive Business Practices Act. However, there are other state and numerous federal laws applicable to dealer advertising. These include the Federal Trade Commission Act, Truth-in-Lending Act, Regulation Z, Consumer Leasing Act and Regulation M, among others. In Illinois, the Attorney General’s Office is charged with enforcing Illinois laws intended to protect Illinois consumers against unfair and deceptive practices. The Illinois Consumer Fraud and Deceptive Business Practices Ac t (815 ILCS 505/1 et seq.) generally prohibits such un fa i r met hods of competition and unfair or deceptive acts or practices which include: • a ny d e c e p t i o n , fraud, false pretense, f a l s e p r om i s e , misrepresentation, or • any concealment, s u p p r e s s i o n o r omi ssion of any material fact, or • a n y p r a c t i c e desc r ibed i n t he “UniformDeceptive Tr ade P r a c t ic e s Act”. Th i s l aw appl ie s t o advertising and to business practices and transactions. And pursuant to Section 4 of the Consumer Fraud Act, the Illinois Motor Vehicle Adver tising Regulations (14 Ill. Admin. Code 475, 15 Ill. Reg. 17950) were promulgated in 1991 relating t o d e a l e r a dve r t i s i n g . The Attorney General is authorized to investigate adver tising practices for compl i a nc e w i t h t he s e Regulations – whether or not there are complaints – when it appears an unlawful practice has been or is being committed, or when it’s in the public interest. This includes subpoena powers. T he I l l i no i s At t o r ne y General can also bring a civil