Pub. 8 2018 Issue 4
9 enforcement lawsuit against the person or business engaging in the unlawful practice. Available remedies for advertising and other violations of the Consumer Fraud Act include: injunctive relief, civil penalties, revocation or suspension of licensure, and restitution. Dealership staff, media personnel and t hi rd par t y agents i nvolved i n the dealership’s adver tising should all undertake thorough review of the Motor Vehicle Advertising Regulations to ensure t hei r understand i ng and advertising compliance. The Regulations c a n b e f o u n d a t : h t t p : //w w w. illinoisattorneygeneral.gov/consumers/ vehicle_adver tis.html. Questions of compliance or inter pretation about the Regulations and their applicability should be discussed with knowledgeable legal counsel for the dealership. The Regulations apply to all forms of advertising, including without limitation print, broadcast, direct mail, website and digital, social media, signs, billboards, window stickers and all oral, written and pictorial statements. This list is not exhaustive. Each dealership is responsible for the content of its advertisements. So, dealers should hold accountable their staffs, media representatives, website providers, manufacturers, ad agencies, marketing companies and anyone who prepares and is involved in placement of ads for the dealership. Before finalizing any advertisement, dealerships should perform an internal compliance assessment to ensure the ad does not contain prohibited claims and that disclosures and other requirements are satisfied. The following checklist, while not exhaustive nor a substitute for review and application of the Regulations to ensure compliance, might aid dealers in their internal compliance review: • Is thesubstanceoftheadvertisement prohibited (for example, dealer rebates, guaranteed t rade-in amount, “free” or similar offers, limited rebates included within advertised price or payment)? • Does the substance of the proposed advertisement require a particular format? • Doesthenatureoftheadvertisement require certain disclosures (for example, credit advertising Truth- in-Lending; limitation as to quantity of advertised vehicles; limitation as to the effective period of the advertised offer)? • Is the advertised vehicle price the total advertised price? • Does the adver tising format adequately distinguish between lease and sale offers if both are present? • If the advertisement refers to a credit sale, are there “triggering” te rms, and a re a l l requ i red disclosures included; or if the advertisement refers to a consumer lease, are there “triggering” terms, and are all required disclosures included? • Are disclosures published in a “clear and conspicuous” manner? • Are the disclosures understandable in light of the content of the advertisement? • Has the dealership arranged for a responsible person to review the advertising “proof” for compliance and possible errors? Dea le r s c an a l so con s u lt wit h experienced counsel who can assist in advising about the applicability of the Regulations and state and federal laws to dealership advertising. By properly handling advertising compliance on the front end, dealers can enhance their customers’ experience and resulting satisfaction about an advertised offer, and simultaneously help themselves avoid or, at least, reduce exposure to compliance problems and costs associated with regulatory scrutiny and enforcement. Julie A. Cardosi is Principal of the private firm, Law Office of Julie A. Cardosi, P.C., of Springfield, Illinois. She has practiced law for over 30 years, and represents the business interests of franchised motor vehicle dealers throughout Illinois. Formerly in-house staff legal counsel for the Illinois Automobile DealersAssociation,sheconcentratesherprivatepractice in the areas of dealership compliance matters, transfers of ownership, mergers and acquisitions, franchise law, commercial real estate transfers, and other areas impacting day-to-day dealership operations. She has also served as former Illinois Assistant Attorney General and Deputy Chief of the Consumer Fraud Bureau of the Attorney General’s Office. The material discussed in this article is for general information only and is not intended as legal advice and should not be acted upon as such. Dealers should consult their own private legal counsel for application to their specific circumstances. For more information, Julie can be reached at jcardosi@ autocounsel.com , or at 217-787-9782, ext. 1. The Regulations apply to all forms of advertising, including without limitation print, broadcast, direct mail, website and digital, social media, signs, billboards, window stickers and all oral, written and pictorial statements. This list is not exhaustive. Each dealership is responsible for the content of its advertisements.
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