The Better Business Bureau/CATA advertising review program, initiated in 1996, continues to provide valuable guidance for dealers as they navigate their advertising practices in light of evolving marketplace factors and the Illinois Motor Vehicle Advertising Regulations. Through the program dealers can self-regulate and avoid enforcement issues while they successfully operate their businesses.

The BBB has increasingly encountered advertised price disclosures that contain so many qualifiers as to run afoul of rule 475.310 of the Illinois Motor Vehicle Advertising Regulations. Here is the rule language:

Section 475.310  Advertised Price

It is an unfair or deceptive act to advertise the total price of a motor vehicle without including in the advertised price all costs to the purchaser at the time of sale , or which are necessary or usual prior to delivery of such vehicle to the purchaser, including any costs of delivery, dealer preparation and any other charges of any nature; provided, however, taxes, license and title fees and a documentary service fee, as defined herein, may be excluded from the advertised price if clearly disclosed in the advertisement that these costs are excluded from the advertised price. Purchasers shall be able to purchase all vehicles described by the advertisement at the advertised price.

SOURCE: Amended at 25 Ill. Reg. 4819, effective March 20, 2001.

Rule 475. 310 contains two unambiguous requirements.

It allows dealers to exclude four specific items from the advertised price of a vehicle which are: tax, title, license, and the current dealer doc fee. This year it is 358.03.  A dealer must also clearly disclose that these fees are excluded from the price.

The history of this standard includes the policy that all costs and all necessary and usual amounts must be bundled into the advertised price, except these four items, so that consumers fully understand the price and do not experience surprise costs during the transaction process, raising the advertised price to a higher price.

Of course, consumers can always choose to purchase aftermarket products at the time of sale, raising the price.  They are aware of this and make those choices with full knowledge. That is how car buying works.

The second requirement is that all purchasers must be able to purchase advertised vehicles at the advertised price.

With the growing prominence of internet advertisers and manufacturers providing content for dealers we are seeing price disclosures that attempt to cover every imaginable situation.  Dealers often don’t know such disclosures are included in their price listings.

The two standards of 310 are often lost as a result.

Here are some examples the BBB has recently found on dealer websites which are non-compliant with Rule 475.310:

“It (price) does not include sales tax, vehicle registration fees, finance charges, documentation charges, and any other fees required by law.  The estimated selling price that appears after calculating dealer offers is for informational purposes, only. You may not qualify for the offers, incentives, discounts…”

“Prices include all available rebates and incentives. Prices do not include additional fees and costs of closing, including government fees and taxes, any finance charges, any dealer documentation fees, any emissions testing fees or other fees. All prices, specifications and availability subject to change without notice. Contact dealer for most current information.”

“Prices include all applicable rebates, but do not include additional fees and costs of closing, including government fees and taxes, any finance charges, any dealer documentation fees, any emissions testing fees or other fees. All prices...subject to change without notice.”

“The advertised price does not reflect the final selling price. It does not include sales tax, vehicle registration fees, finance charges, documentation charges, dealer installed options, and any other fees required by law. We attempt to update this inventory on a regular basis. However, there can be a delay between the sale of a vehicle and the update of the inventory. Pricing and availability may vary based on a variety of factors, including options, manufacturer employee pricing, specials, fees, and financing qualifications. The estimated selling price that appears after calculating dealer offers is for informational purposes, only. You may not qualify for the offers, incentives, discounts, or financing. Offers, incentives, discounts, or financing are subject to expiration and other restrictions. See dealer for qualifications and complete details. Not responsible for clerical or typographical errors”

“Starting MSRP excludes transportation, taxes, title, other options, and dealer charges. Dealer sets actual price. Specifications, equipment, options, and prices are subject to change without notice.”

The above disclosures exclude many more items from an advertised price than allowed by the Rule.  They also directly or indirectly take away the advertised price which must be available to all. 

The BBB has written many letters on this subject in recent weeks, and we want to shine a light on the practice for all dealers so they can avoid issues around Rule 475.310.

The BBB continues to monitor the marketplace to ensure a fair and honest market for all dealers and to notify dealers of problematic content in their advertisements including their websites.