Deal Pack Blog

Texas Advertising Rules

posted on: June-13-2019
by: Rachel Jurich

It’s no secret that good advertising generates prospects, and this is what all business owners strive for. However, advertising can be detrimental if business owners are not following the rules as to what is deemed acceptable. It is important to note that in Texas, advertising rules differ for new car dealers and used car dealers.

For example, new car dealers can utilize verbiage such as “discount”, “rebate”, and “sales price”. On the other hand, used car dealers may not use these same terms. This is because all statements must be objective and only new car dealers have Manufacturers Suggested Retail Price or M.S.R.P to hold them accountable. Regulatory agencies such as the Federal Trade Commission and Texas Department of Motor Vehicles have noticed unacceptable bait and switch tactics used in advertising. In order to eliminate this, if a vehicle is listed at a lower price, it must be sold at said lower price.
 
Here are a few examples of advertising rules for Texas dealers:

  1. 1) The featured sales price in an advertisement must be the price before the addition or subtraction of any other negotiated terms. Delivery and Documentary Fees must also be included in the featured sales price.
  2. 2) The only costs and charges that may be excluded from the featured sales price are: Registration, Certificate of Title, License Fees, Taxes and Fees established by law
  3. 3) The following terms may not be associated with a featured sales price: “with trade”, “with acceptable trade”, “with dealer-arranged financing”, “rebate assigned to dealer” or “with down payment”.
  4. 4) Phrasing a featured sales price such as an “internet price”, “e-price” or any other like terms that could suggest that there is a different sales price for online transactions is prohibited.
  5. 5) Used car dealers may not utilize savings or discount offers. This is only deemed acceptable for new car dealers.
  6. 6) Phrases including “up to”, “as much as” and “from” are prohibited if used with savings or discount offers.
  7. 7) If a new car dealer decides to utilize savings or discount offers, they must be available to all public buyers.
  8. 8) All inducement components of a savings or discount offer must be divulged.

Advertisements and tracking codes for all states can be monitored and kept compliant in our Client Relationship Management System, CyclCRM, or our Dealer Management System, Deal Pack Pro. Interested in how to make our software work for you? Call our support line at 1(800)526-5832 for a demo today!

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