Providing guidance and instruction to ensure Dealers comply with Advertising best practices.
Regulated Advertising Practices
24 VAC 22-30-10. Intent.
In the 1989 Acts of the Virginia General Assembly it was found that it is in the interest of the consuming public and legitimate motor vehicle dealers to ensure that the advertising of motor vehicles is honest, fair, and clear and that deceptive or misleading advertising of the retail sales of motor vehicles as described in Motor Vehicle Dealer Advertising, Article 9 (§ 46.2-1580 et seq.) of Chapter 15 of Title 46.2 of the Code of Virginia should be prohibited. In the 1995 Acts of the Virginia General Assembly it was found that it is in the interest of the consuming public and legitimate motor vehicle dealers for dealers to be regulated by a board of their peers, resulting in the formation of the Virginia Motor Vehicle Dealer Board. Therefore, the following regulations are promulgated by the board to administer the administrative and civil penalties necessary for enforcement of prohibited advertising practices.
24 VAC 22-30-20. Definitions.
The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:
“Act” means Chapter 15 (§ 46.2-1500 et seq.) of Title 46.2 of the Code of Virginia.
“Administrative penalties” means the denial, suspension or revocation of a license as allowed in § 6.2-1576 of the Act and based on one or more of the grounds specified in § 46.2-1575 of the Act.
“Advertiser” means same as licensee.
“Advertisement ” means an oral, written, graphic or pictorial statement made in the course of soliciting business, including, without limitation, a statement or representation made in a newspaper, magazine, or other publication, or contained in a notice, sign, poster, display, circular, pamphlet, or letter, or on radio, the Internet, or via an on-line computer service, or on television. The term does not include an in-person oral communication by a dealer’s employee with a prospective customer.
“Board” means the Motor Vehicle Dealer Board of this Commonwealth.
“Civil penalty” means the monetary assessment imposed by the board or the executive director against a licensee not to exceed $1,000 for any single violation of § 46.2-1581 of the Code of Virginia.
“Disclaimer” means those words or phrases used to provide a clear understanding or limitation to an advertised statement but not used to contradict or change the meaning of the statement.
“Disclosure” means a statement in clear terms of the dollar amounts, time frames, down payments and other terms which may be needed to provide a full understanding of credit terms, periodic payment, interest rates, time payment plans, etc.
“Executive director” means the Executive Director of the Motor Vehicle Dealer Board of this Commonwealth.
“Internet” means the international network of computer systems commonly known as the “internet.”
“License” means the document issued to a Virginia motor vehicle dealer and which permits such dealer to engage in the business of buying and selling new and used motor vehicles or used motor vehicles only.
“Licensee” means any person, partnership, association, corporation or entity which is required to be licensed as a motor vehicle dealer in this Commonwealth.
“Line-make marketing group” means an association of motor vehicle dealers franchised to sell and advertise the same line-make of new motor vehicles.
“New motor vehicle” means a vehicle which meets all of the following criteria. The new motor vehicle has:
- Had limited use necessary in moving or road testing the vehicle prior to delivery to a customer;
- Been transferred by a manufacturer’s or distributor’s certificate of origin which is the document provided by the manufacturer of a new motor vehicle, or its distributor to its franchised motor vehicle dealer;
- The manufacturer’s or distributor’s certification that it conforms to all applicable federal motor vehicle safety and emission standards;
- Not been previously sold by a dealer except for the purpose of resale and when the exchange is between franchised dealers of the same line-make;
- Not been used as a rental, driver education, or demonstration motor vehicle; and
- Not been used for the personal and business transportation of the manufacturer, distributor or dealer or any of their employees.
“On-line service” means any information service, system, or access software provider that enables computer access by multiple users to a computer server, including specifically a service or system that provides accesses to the internet.
“Repossessed vehicle” means a vehicle which meets all of the following criteria. It has:
- Been sold, titled, registered, and taken back from a purchaser for nonpayment; and
- Not yet been resold to an ultimate user.
“Sale” means there is a significant reduction from the advertiser’s usual and customary price of a motor vehicle and the offer is for a limited period of time.
“Used motor vehicle” means any vehicle other than a new motor vehicle as defined in this chapter.
Regulated Advertising Practices