26- 239 C.M.R. ch. 104, § 12

Current through 2025-03, January 15, 2025
Section 239-104-12 - MISLEADING CLAIMS OF POTENTIAL SAVINGS

The following claims of potential savings are in violation of these rules:

A."Factory outlet". Using terms such as "factory outlet," "factory authorized sale," or similar terms (which imply that the dealer has a special connection or relationship with the manufacturer that is greater or more direct than that of other dealers), when in fact no such special connection or relationship exists, or when any such special connection or relationship has no discernible effect on vehicle prices.
B."Liquidation sale". Advertising a "liquidation sale," "public notice," "public sale," "bankruptcy sale" or similar terms, where the sale is not required by court order, by operation of law, in conjunction with an action in bankruptcy, or by the scheduled cessation of the dealer's business.
C."Dealer cost," "dealer invoice," etc. Using terms which represent that a vehicle is available for sale at a price below cost, at cost, or slightly above cost, such as "dealer cost," "dealer invoice," "inventory price," "factory invoice," "wholesale," "factory billing," or similar terms, unless the advertisement clearly discloses any factors that may reflect the ultimate cost to the dealer, such as manufacturer incentives, awards, dealer holdbacks, decreased trade-in allowances or increased finance charges.
D.Unsubstantiated pricing. Advertising "lower prices than anyone else," or similar terms, if such claims cannot be substantiated by the dealer.
E."As low as," "from," "rebates up to," and stock number ads. Using the terms "as low as [a certain price or finance charge]," "from [a certain price]," "rebates up to [a certain dollar amount]," or similar terms, or stating a stock number, unless the advertised vehicles are available for sale as required by Section 4 of these Rules.
F."Money-back guarantees" or "free trials". Advertising "satisfaction guaranteed," "money-back guarantee," "risk free trial," or similar terms unless the dealer will readily refund the full purchase price of the vehicle upon complaint by the buyer, and any conditions or limitations are disclosed.
G.List price comparisons. Advertising a price that is compared to a "list" price or other similar term unless the list price is the Manufacturer's Suggested Retail Price (MSRP).

26- 239 C.M.R. ch. 104, § 12