Adopted New Regulation 12-6-102 (1.5)
Statement of Authority, Basis and Purpose

The Statutory Authority for the adoption of this new Regulation 12-6-102 (1.5) is Section 12-6-101, C.R.S., Section 12-6-102, C.R.S., Section 12-6-102 (1.5), Section 12-6-103, C.R.S., Section 12-6-104, C.R.S., Section 12-6-118, C.R.S., and, Section 12-6-118 (3)(k), C.R.S.

The Basis and Purpose for adoption of this new regulation in the Motor Vehicle Dealer Board Regulations is to define the term, “computer display.” 

ADOPTED NEW REGULATION:

Regulation 12-6-102 (1.5)

The term, “Computer Display,” means any electronic device capable of presenting a commercial message. 

Adopted Revised Regulation 12-6-118(3)(k)
Statement of Authority, Basis and Purpose

The Statutory Authority for the adoption of this revised Regulation 12-6-118(3)(k) is Section 12-6-101, C.R.S., Section  12-6-102, C.R.S., Section 12-6-102 (1.5), Section 12-6-103, C.R.S., Section 12-6-104, C.R.S., Section 12-6-118, C.R.S., and, Section 12-6-118(3)(k), C.R.S.

The Basis and Purpose for adoption of this revised regulation in the Motor Vehicle Dealer Board Regulations is consumer protection, better compliance, and improved enforcement through:  1) simplifying and clarifying prohibited uses of the term, “used”; 2) modernizing the list of other known vehicle history statuses that an advertiser must disclose in an advertisement; 3) recognizing additional possible taxes and fees that do not need to be included in an advertisement; 4) prohibiting the combination of rebates, incentives, and other offers, and prohibiting the impression that rebates, incentives, and other offers are obtainable, if they are not; 5) adding a requirement that if an advertisement relates to a lease agreement, the advertisement must clearly and conspicuously disclose that the terms of the advertisement relate to a lease, not a purchase; 6) prohibiting misleading statements that may falsely assure a prospective credit purchaser of credit financing; and, 7) defining the term,  “bait advertising,” and prohibiting bait advertising.

ADOPTED REVISED REGULATION:

Regulation 12-6-118(3)(k) 

Advertising shall be construed to be misleading or inaccurate in the following particulars:

Rule 1. Advertising a motor vehicle which is not in operable condition unless specifically disclosed.

Rule 2. Advertising which would imply the dealer is going out of business when such is not the case.

Rule 3. Advertising a specific motor vehicle for sale or lease with price or terms quoted, without fully identifying the vehicle as to year, make, model and dealer stock number. Such vehicle shall be willfully shown and sold at the advertised price and/or terms while such vehicle remains unsold or unleased, for a period of five days following the last date the ad was published, unless the ad states that the advertised price and terms are good only for a specific time and such time has elapsed. If a specific number of motor vehicles is advertised, such vehicles must have been invoiced to the dealer.

Rule 4. Using a picture or photograph of a vehicle in advertising when the picture or photograph is not the same make, year and equipment actually being offered for the price or terms advertised.

Rule 5. Advertising in such a manner which utilizes an asterisk or other reference symbols to contradict or materially change the meaning of any advertising statements.

Rule 6. A used vehicle shall not be advertised in any manner that creates the impression that it is new.

Rule 7. Advertising motor vehicles which are known by the dealer to be salvage, rebuilt from salvage, or flood vehicles, which are not so identified in the advertisement.

Rule 8. Advertising in any manner to imply that a purchaser will be receiving benefits of any existing loan on a vehicle when no such benefit exists.

Rule 9. Advertising or making statements that are not true or that cannot or will not be honored. Advertising which creates the false impression that the purchaser will determine the terms, price or conditions of a sale, such as “write your own deal,” “name your own price,” “no reasonable offer refused,” and “we will not be undersold.” Advertising any item as “free” which is associated with or conditioned upon the negotiated sale of a motor vehicle.

Rule 10. Advertising sales prices for used motor vehicles which claim or imply a specific savings or discount without clearly and accurately documenting the basis for the savings or discount.

Rule 11. Advertising any reference to “dealer cost” or “invoice” price. Advertising the word “wholesale” in connection with the retail offering of motor vehicles.

Rule 12. Advertising a specific trade-in amount or range of amounts without, in fact, offering such a trade-in amount and, failing to disclose or advertise the M.S.R.P., sale price, or capitalized cost of the vehicle from which the trade-in will be deducted.

Rule 13. Advertising the price of a vehicle without including all costs to the purchaser at the time of delivery, except sales tax, finance charges, cost of emissions test, other governmental fees or taxes, and transportation costs, incurred after sale, to deliver the vehicle to the purchaser at the purchaser's request.

Rule 14. Advertising any specific discount or rebate on new motor vehicles without the manufacturer's suggested retail price conspicuously stated in the ad.  When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not.

Rule 15. Advertising any qualifying statement or disclosure which is not clear, conspicuous, and readable, and which is not adjacent to the offer or terms it qualifies, and in less than eight-point type.

Rule 16. Advertising any contest that offers to prospective participants the opportunity to receive or compete for gifts or prizes without such advertisement containing the words “no purchase or payment of any kind is necessary to enter or win this contest” in bold-faced type and at least ten-point type.

Rule 17.  If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.

Rule 18.  Statements, such as “Everybody Financed,” “No Credit Rejected,” “We Finance Anyone,” and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.

Rule 19.  Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed.