Page 10 - VIADA-Spring2018-Final 030518-web

REPRINTED COURTESY MOTOR VEHICLE DEALER BOARD

NEW MVDB

GUIDANCE DOCS

FOR ADVERTISING

During its review of the 2001 Internet Task nation charges; if the advertised price does
Force Report, the 2017 Internet Task Force not include freight and destination charges it
committee, discussed advertising scenari- must be clearly and conspicuously disclosed.
os that involved licensed dealers. Four rec- This fee cannot be charged on any preowned
WHEN A DEALERSHIP ommended guidelines came out of the 2017 vehicle, nor can it be charged to the customer
for the movement or transport of the vehicle
Internet Task Force meetings. These recom-
ADVERTISES VEHICLES mendations were presented to the Advertising from another location to the licensed dealer-
FOR SALE, THE Committee and the full Board for discussion ship location.
ADVERTISEMENT during the November 2017 Board meeting; and Vehicle Location
in the January 8, 2018 meeting the full Board ap-
SHOULD CLEARLY proved the four guidelines (All four advertising Dealers are responsible for their advertise-

IDENTIFY THE guidelines are effective March 1, 2018): ments, regardless of the format and media
(print, Internet, videos, electronic, YouTube,
LOCATION OF EACH Removal of Vehicles from Website etc.). In addition to the Motor Vehicle Deal-
VEHICLE LISTED In addition to the Commonwealth’s advertis- er advertising laws and regulations, clarity
FOR SALE IN THE ing laws and regulations, guidance is being is being provided to dealerships regarding
provided to dealerships regarding the remov-
advertising of vehicles for dealerships with
ADVERTISEMENT AND al of vehicles from the dealer’s website once more than one location, and vehicles being
EACH VEHICLE THAT IS the vehicle has been sold. Upon selling a vehi- advertised at a location when the vehicle is
cle listed on its website, the dealer should take physically located somewhere else. When a
ADVERTISED FOR SALE action to remove the vehicle from the website dealership advertises vehicles for sale, the
SHOULD PHYSICALLY within five business days. This is recommend- advertisement should clearly identify the
ed to allow the dealership time to coordinate location of each vehicle listed for sale in the
BE LOCATED AT the removal of the vehicle from the website, advertisement and each vehicle that is adver-
THE ADVERTISED to avoid misleading the customer and the ap- tised for sale should physically be located at
LOCATION. pearance of bait and switch practices. the advertised location.

Freight Charges/Shipping Charges/ Transfer Fees
Delivery Charges/Destinations This fee is allowed when a dealership has
Charges multiple locations and the customer requests
This fee is commonly associated with new the vehicle be transferred to a specific location
vehicles being delivered directly from the for potential purchase. The customer should
manufacturer to the franchise dealership or be given the option of purchasing the vehicle
customer. It is included in the Manufacturer’s at the dealership where the vehicle is located.
Suggested Retail Price (MSRP). This fee must However, if the customer requests that the ve-
be properly disclosed on all advertisements hicle be transferred to a dealership other than
and will appear on the invoice from the man- where the vehicle is located, the dealership may
ufacturer. The advertised price should ensure charge a transfer fee. The transfer fee should be
that customers are properly informed if the reasonable and should be disclosed to the cus-
advertised price includes freight and desti- tomer prior to the transfer of the vehicle. n

8 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2018