Having had a front row seat in the drafting and promulgation of the Illinois Motor Vehicle Advertising Regulations (“Regulations”) ¹, I can attest that the Regulations were intended and established to ensure transparency and fairness in automotive advertising. The Illinois automotive dealer industry has embraced these new legal standards. Indeed, the automotive industry in Illinois eagerly welcomed and had significant input in the adoption process through the involvement and advocacy of dealers and their representative automotive trade groups, chiefly among them, IADA.

The Motor Vehicle Advertising Regulations were first adopted on Dec. 3, 1991, by the Illinois General Assembly’s Joint Committee on Administrative Rules.² The Regulations were implemented under the Illinois Consumer Fraud and Deceptive Business Practices Act³ which seeks to protect consumers from unfair and deceptive business practices, including without limitation, misleading advertisements. The Illinois Attorney General’s office is responsible for enforcing the Regulations,⁴ ensuring that dealerships and advertisers comply with the law.

The Regulations cover various aspects of motor vehicle advertising, which includes but is not limited to the following:

• Clear and Conspicuous Disclosures: Advertisements must present all material terms in a way that is easily understandable and not misleading.⁵
• Price Advertising: Dealers must accurately represent the total advertised price⁶ of their advertised vehicles, including any limitations or conditions.
• Credit and Lease Advertising:⁷ Advertised vehicle financing rates and terms, as well as vehicle lease terms, must be truthful and comply with state and federal laws.
• Manufacturer Rebates and Trade-ins:⁸ Promotions involving trade-ins or manufacturer rebates must be clearly defined and not deceptive with specific disclosures and applicable requirements.

The Motor Vehicle Advertising Regulations provide several advantages to both the automotive industry and dealers in Illinois:

• Consumer Trust: Transparent advertising fosters trust between dealerships and customers which facilitates stronger customer relationships and repeat business for dealers.
• Legal Protection: Compliance with the Motor Vehicle Advertising Regulations helps dealerships avoid legal disputes with state and federal regulators (such as the Illinois Attorney General’s Office and the Federal Trade Commission) and potential fines and civil penalties; as well as disputes and private litigation brought by customers which can lead to monetary damage awards, attorneys fees and other pecuniary costs to the dealership, beyond negatively impacting the dealership’s goodwill business relationships with its customers.
• Market Fairness: Legally promulgated and standardized advertising practices under the law create a level playing field within the industry and prevent unethical competition.
• Enhanced Business Reputation: Dealers who adhere to the legal requirements of the Motor Vehicle Advertising Regulations build positive relationships with their customers and their vendors and suppliers, as well as within their local communities.

The Motor Vehicle Advertising Regulations are time-tested. That is, over the years, since their original adoption in 1991, even with the advent of the internet and the precipitous decline of print media, the Regulations have undergone very few, minor amendments, which have included updates in 2001 to certain disclosures, and in 2003 to refine certain limitations, price transparency and address lease advertising exemptions.

By maintaining ethical advertising standards, the Motor Vehicle Advertising Regulations ensure that Illinois dealerships and their customers both benefit from a fair and competitive automotive retail market.