November 08, 2024
Business

New rules set for auto ads Promoted price must include extra charges

AUGUSTA – New rules to regulate auto advertising take effect this fall, Attorney General Steven Rowe announced Friday.

Adopted this week, the regulations are designed to cover advertising layouts, vehicle pricing, the availability of advertised vehicles and rebate offers. Rowe said the rules will take effect Oct. 1.

“Consumers are entitled to know what car dealers are offering and for how much,” Rowe said in a statement.

As an example, he said the new rules will require that extra charges such as document fees are included in the advertised price.

“Some people believe that playing ‘hide the ball’ is an essential part of the car sales experience,” Rowe said. “I reject that. I believe that Maine consumers will be best served by competition based on fair, clear car ads.”

The advertising rules are being issued pursuant to the Maine Unfair Trade Practices Act.

Rowe suggested that auto dealers will be among the beneficiaries of the new rules.

“It is not unusual for my consumer protection division to receive calls from dealers complaining about a competitor’s ads,” he said. “They complain the competitor is offering cars at prices so low they could not possibly be true. These rules should end that.”

The rules include a “general prohibition against unfair and deceptive advertising.”

They declare that “all motor vehicle advertising by dealers, whether printed or broadcast, shall be in plain language, with disclosures of material facts that are clear and conspicuous and nondeceptive.”

Under the rules, extra charge means “any consumer charge listed or requested by the dealer for the purchase of a new or used motor vehicle which is not included in the manufacturer’s suggested retail price for that vehicle.”

Examples include: handling charges, floor planning costs, dealer installed options, charges for preparing documents or other dealer preparation services.


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