Dealership Advertising Guidelines

In light of the recent FTC lawsuit against Ramey Motors, inc., it’s time to revisit dealership advertising laws. Here are the major points to consider when putting together your ads.

Stay legal. Make sure you’re familiar with all laws and regulations regarding vehicle advertising. There are all kinds of classes and other resources available for this. It can’t hurt to have your lawyer look things over.

Don’t bait people. You can’t intentionally advertise a vehicle you don’t have with the intention of getting people in the door to switch them to a different vehicle.

Have clear disclosures in places people can plainly see them. Don’t hide disclosures and make sure they have language people understand.

Be careful with comparison advertising. To be safe, just don’t compare your cars to other cars. It’s better to stick with just endorsing the good stuff about yours rather than compare.

Be clear and honest with credit and down-payment offers. Again, make the language understandable to the public and don’t be misleading.

The same goes for total vehicle prices. “Drip pricing” that doesn’t include hidden costs and fees is illegal.

If someone opts out of or unsubscribes from email, comply. Don’t keep sending them stuff.

Endorsements must be truthful. If you have a celebrity, expert or even just a customer endorsing your products or service, it must be an honest reflection of their opinion. In other words, don’t buy “endorsements.”

If you’re going to make “green” or environmental claims, don’t exaggerate. Again, tell the truth here. It’s best not to make these claims unless you have real data to back it up.

You can’t give away “free” stuff that is contingent on the purchase of a vehicle or service.

Use the fuel economy claims direct from the manufacturer, so you aren’t on the hook if they’re wrong.

All of these rules apply to all forms of advertising: billboards, newspaper ads, online banner ads, websites, emails, direct mail, etc.

**Please note, I’m not legal counsel. These are only guidelines and not legal advice.

Source: NADA