Phone: 630-495-2282 Fax: 630-495-2260 Map/Directions
 

Amended state regulations permit dealers to advertise some gifts

November 23, 2010
Dealers may advertise or offer gifts related to a vehicle purchase or lease if the gift is offered through a manufacturer's program or a manufacturer-authorized and approved dealer advertising association, following amendments to the Illinois Motor Vehicle Advertising Regulations. The amendments took effect April 16. Other amendments (underlined portions are new to the regulations): Section 475.530 Rebates b) It is an unfair or deceptive act for any dealer to advertise a price or amount of installment payment, wherein rebates have been deducted, unless every consumer seeking to purchase or lease the advertised vehicle is eligible for the rebate. c) Dealers may advertise the availability of a limited rebate if the terms of the limitation are clearly and conspicuously disclosed. It is an unfair or deceptive act for any dealer to advertise a price or amount of an installment payment in which limited rebates have been deducted, or to advertise a total amount of rebate if a portion of the total consists of a limited rebate. Section 475.560 Shopped Price It is an unfair or deceptive act to advertise any sale or lease price modified by phrases such as "based on shopped price," "based on a recent survey of prices," or similar terms, unless: a) the model of vehicle selected is a model sold and available at most dealer stores of the same line make in the shopped area in which the advertisement appears;b) the survey conducted is independent, and the survey agency used to conduct the survey was not related to or affiliated with any manufacturer or dealer carrying the vehicle in inventory; c) the survey takes place immediately prior to the first advertisement being placed; d) at least one-half of the dealers of the applicable line make in the shopped area were surveyed; e) the survey result has not been used over an extended period if costs or other factors change such that the average survey price has become significantly less than the prevailing price in the shopped area, and in no event shall be used for a period exceeding 90 days; f) if the product is pictured in the survey ad, the picture is of the exact type and model surveyed; also the picture includes only features included in the survey price; g) the dates of the survey period and the numbers of dealers shopped are disclosed in the ad, with a statement that individual dealer prices may be higher or lower; and h) all dealerships shopped for the survey are located within the shopped area. Section 475.590 Gifts and Free Offers a) It is an unfair or deceptive act to advertise or offer free prizes, gifts or other incentives in connection with the purchase or lease of a vehicle where the vehicle is sold or leased at a price arrived at through bargaining or negotiation, unless the dealer meets the requirements of subsection (b) of this Section. b) A free prize, gift or other incentive may be advertised or offered in connectioon with the purchase or lease of a vehicle if: 1) the free prize, gift or other incentive is offered through a manufacturer's program or a manufacturer's authorized and approved dealer advertising association without any participation by the dealer, excluding dues or assessments that are required to participate in the advertising association. The program or association shall be clearly and conspicuously disclosed; and 2) all material terms and conditions relating to the offer are clearly and conspicuously disclosed at the outset of the offer. c) Nothing in this Section shall prohibit a dealer from including a warranty with the purchase or lease of a vehicle. A warranty shall not be advertised as free using the word "free."
 

Back