                                 CODE OF VIRGINIA

REGULATED ADVERTISING PRACTICES (§ 46.2-1581)

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

1. A vehicle shall not be advertised as new, either by word or implication,
unless it is one which conforms to the requirements of &#xA7; 46.2-1500.

2. When advertising any vehicle which does not conform to the definition of
&#8220;new&#8221; as provided in &#xA7; 46.2-1500, the fact that it is used
shall be clearly and unequivocally expressed by the term &#8220;used&#8221; or
by such other term as is commonly understood to mean that the vehicle is used.
By way of example but not by limitation, &#8220;special purchase&#8221; by
itself is not a satisfactory disclosure; however, such terms as
&#8220;demonstrator&#8221; or &#8220;former leased vehicles&#8221; used alone
clearly express that the vehicles are used for advertising purposes.

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

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

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

6. The term &#8220;list price,&#8221; &#8220;sticker price,&#8221; or
&#8220;suggested retail price&#8221; and similar terms, shall be used only in
reference to the manufacturer&#8217;s suggested retail price for new vehicles or
the dealer&#8217;s own usual and customary price for used vehicles.

7. Terms such as &#8220;at cost,&#8221; &#8220;below cost,&#8221; &#8220;$ off
cost&#8221; shall not be used in advertisements because of the difficulty in
determining a dealer&#8217;s actual net cost at the time of the sale. Terms such
as &#8220;invoice price,&#8221; &#8220;$ over invoice,&#8221; may be used,
provided that the invoice referred to is the manufacturer&#8217;s factory
invoice or a bona fide bill of sale and the invoice or bill of sale is available
for customer inspection.
			&#8220;Manufacturer&#8217;s factory invoice&#8221; means that document
supplied by the manufacturer to the dealer listing the manufacturer&#8217;s
charge to the dealer before any deduction for holdback, group advertising,
factory incentives or rebates, or any governmental charges.

8. When the price or credit terms of a vehicle are advertised, the vehicle shall
be fully identified as to year, make, and model. In addition, in advertisements
placed by individual dealers and not line-make marketing groups, the advertised
price or credit terms shall include all charges which the buyer must pay to the
seller, except buyer-selected options, state and local fees and taxes, and
manufacturer&#8217;s or distributor&#8217;s freight or destination charges, and
a processing fee, if any. If a processing fee or freight or destination charges
are not included in the advertised price, the amount of any such processing fee
and freight or destination charge must be (i) clearly and conspicuously
disclosed in not less than eight-point boldface type or (ii) not smaller than
the largest typeface within the advertisement. If the processing fee is not
included in the advertised price, the amount of the processing fee may be
omitted from any advertisement in which the largest type size is less than
eight-point typeface, so long as the dealer participates in a media-provided
listing of processing fees and the dealer&#8217;s advertisement includes an
asterisk or other such notation to refer the reader to the listing of the fees.

9. Advertisements which set out a policy of matching or bettering
competitors&#8217; prices shall not be used unless the terms of the offer are
specific, verifiable and reasonable.

10. Advertisements of &#8220;dealer rebates&#8221; shall not be used. This does
not affect advertisement of manufacturer rebates.

11. &#8220;Free,&#8221; &#8220;at no cost,&#8221; or other words to that effect
shall not be used unless the &#8220;free&#8221; item, merchandise, or service is
available without a purchase. This provision shall not apply to advertising
placed by manufacturers, distributors, or line-make marketing groups.

12. &#8220;Bait&#8221; advertising, in which an advertiser may have no intention
to sell at the price or terms advertised, shall not be used. By way of example,
but not by limitation:
			a. If a specific vehicle is advertised, the seller shall be in possession of
a reasonable supply of said vehicles, and they shall be available at the
advertised price. If the advertised vehicle is available only in limited numbers
or only by order, that shall be stated in the advertisement. For purposes of
this subdivision, the listing of a vehicle by stock number or vehicle
identification number in the advertisement is one means of satisfactorily
disclosing a limitation of availability.
			b. Advertising a vehicle at a certain price, including &#8220;as low
as&#8221; statements, but having available for sale only vehicles equipped with
dealer added cost &#8220;options&#8221; which increase the selling price, above
the advertised price, shall also be considered &#8220;bait&#8221; advertising.
			c. If a lease payment is advertised, the fact that it is a lease arrangement
shall be disclosed.

13. The term &#8220;repossessed&#8221; shall be used only to describe vehicles
that have been sold, registered, titled and then taken back from a purchaser and
not yet resold to an ultimate user. Advertisers offering repossessed vehicles
for sale shall provide proof of repossession upon request.

14. Words such as &#8220;finance&#8221; or &#8220;loan&#8221; shall not be used
in a motor vehicle advertiser&#8217;s firm name or trade name, unless that
person is actually engaged in the financing of motor vehicles.

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

HISTORY: 1989, c. 308, § 46.1-550.5:40; 1990, c. 84; 1991, c. 626; 1996, c.
1027; 1998, c. 325; 2008, c. 166.