As the Better Business Bureau continues to monitor the dealer marketplace, we are seeing dealers who include limited rebates in advertised prices contrary to Rules 475.310 and 475.530.

The relevant language in Rule 475.310 is this:

 “Purchasers shall be able to purchase all advertised vehicles described by the advertisement at the advertised price.”

Rule 475.530 states that”

“(c) Dealers may advertise the availability of a limited rebate if the terms of the limitation are clearly and conspicuously disclosed. It is and unfair or deceptive act for any dealer to advertise a price or amount of an installment payment in which limited rebates have been deducted, or to advertise a total amount of a rebate if a portion of the total consists of a limited rebate.”

The BBB occasionally sees the common limited rebates, such as military, included in advertised prices. However, more often we see limited rebates conditioned on the consumer qualifying for financing included in advertised prices. 

Such rebates are limited because not all consumers will choose financing and those who do must qualify for the financing subject to the rebate.

The BBB suggests that dealers check their websites to ensure that financing rebates are not included in advertised prices. They should be advertised separately, clearly and conspicuously as to their terms, so that all consumers qualify for the advertised price and also understand which limited rebates may be available for them to further lower the advertised price.

We have sent numerous letters on this subject in an effort to gain compliance with the rules and, importantly, ensure fair competition for all dealers.

We also encourage dealers who observe troublesome practices themselves to refer these issues to the BBB so that we can handle them and preserve the fair marketplace. Please contact BBB Senior Counsel Patricia Kelly at pkelly@chicago.bbb.org for any referrals of dealer practices.  The BBB is here to handle any dealer concerns.