New Motor Vehicle Dealer Price Advertising Guidance
DEALER ADVERTISING RULES COMPLIANCE INFORMATION
Welcome to the Dealer Advertising Rules Training and Information page. This part of our website hosts information and resources designed to help dealers maintain compliance with Oklahoma New Motor Vehicle Commission advertsing rules. The page will be updated periodically to provide insight and focus on advertising rules and enhance the ONMVC's efforts to effectively regulate new motor vehicle dealer advertising, as directed by Oklahoma New Motor Vehicle Franchise Laws - O.S. 47 § 561 et. seq.
DEALER ONLINE PRICE ADVERTISING
In order to provide guidance for new motor vehicle dealer online price advertising, the dealer website vehicle listing example below is offered as a visual representation of how rules-compliant vehicle price information, discounts, rebates, and incentives should be displayed on dealer websites. The example addresses the display of elements such as:
- MSRP.
- Dealer discounts.
- Dealer installed accessories & equi[ment and addendums.
- Manufacturer rebates & incentives available to all consumers.
- Dealer fees.
- Selling price available to all consumers (The Most Conspicuous Selling Price).
- Conditional offers consumers may qualify for that must not be included in the most conspicuous selling price.
- The transfer of the selling price all buyers qualify for to 3rd party listing websites such as Autotrader, CarGurus, etc.
The Commission's goal is to regulate dealer advertsing in a way that provides consumers with accurate and transparent pricing and ensures a fair market environment among new motor vehicle dealers for the marketing and sales of new motor vehicles.
Dealer Website Price Listing Example
NOTES ON THE DEALER PRICE LISTING EXAMPLE AND CORRESPONDING RULE REFERENCES
• The manufacturer's suggested retail price must match the MSRP displayed on the vehicle's monroney label. MSRP is an exact price and may not be inflated arbitrarily, or otherwise misrepresented. Rule 465:15-3-6
• Dealer installed accessories & equipement including, but not limited to items such as spray-on bedliners, nitrogen in tires or interior /exterior protection products must be included in the online vehicle listing price. These hard-add accessories must also be listed on an addendum label which is attached to the vehicle near the Monroney label. The hard add accessories may be itemized individually or may be listed as a "package" of accessories. Rule 465: 15-3-7 and ONMVC statutes: O.S. 47 Section 565 A (5) (a)
• Dealer discounts must be available to all customers and cannot contain hidden, selective or conditional rebates. Rule 465: 15-3-7
• Rebates or incentives included in the most conspicuous selling price must be available to all consumers. Rule 465: 15-3-7
• The most conspicuous price is to be presented in a way that clearly identifies it as the price for which any consumer may purchase the vehicle. The most conspicuous price is the price that must be distributed to 3rd party websites, and cannot contain conditional or selective rebates or incentives, whether provided by the manufacturer or the dealer. Rule 465: 15-3-7
• Savings or total savings claims must be mathematically consistent with price reduction from MSRP and may only include legitimate discounts, rebates or incentives available to all customers. No conditional offers may be included. Rule 465: 15-3-7
• Dealer-sponsored trade assistance and/or finance assistance must be placed below the most conspicuous price with “Other offers you may qualify for” and must not carry over to 3rd party websites. Rule 465: 15-3-7 (d)
• Selective and/or conditional manufacturer rebates & incentives must be placed below the most conspicuous price with "Other offers you may qualify for” and must not carry over to 3rd party websites. Rule 465: 15-3-7 (d)
This section will be updated periodically and expanded to include guidance for other advertising rules as needed.
Social Media Compliance Tools
The Advertising Rule Enforcement Process
When an advertising rule violation is identified, the ONMVC will send the dealer a warning letter or enforcement documents (Complaint & Notice of Hearing and Consent Order, if appropriate). It will depend upon the rule that has been violated. Warning letters and enforcement documents will be sent by certified mail and by email to the dealer and dealership executive manager, if one exists. Copies of enforcement documents will also be sent the the dealer's registered agent on file with the Oklahoma Secretary of State. Consent Orders apply only to dealers' Level 1 and level 2 violations in Part 1 or Part 2 of the enforcement scale. A Level 3 violation on either Part of the scale will result in an automatic hearing before the Board. There will be no Consent Order on a Level 3 violation.
THE COMPLAINT AND NOTICE OF HEARING
The Notice of Complant and Hearing will include factual allegations, alleged conclusions of law, and provide a scheduled hearing date. Dealerships, as businesses, must be represented by an attorney at an ONMVC Administrative Hearing. * Massongill v. McDevitt, 1989 OK CIV APP 82.
THE ASSOCIATED CONSENT ORDER
The Notice of Complaint and Hearing (for Level 1 and Level 2 violations) will be accompanied by a Consent Order. The Consent Order is an attempt to resolve the matter without the necessity of a Hearing. The Consent Order will include Agreed Findings of Fact, Agreed Conclusions of Law, and an Agreed Final Order which will include a penalty amount. If accepted by the dealer, the Consent Order will be subject to final approval and acceptance by the Board at the next regualrly scheduled Commission Meeting. A dealer may choose to reject a Consent Order. If a Consent Order is rejected by a dealer, the Commission will schedule a Hearing and proper notice will be provided. If a Consent Order is accepted by the dealer, the signed Consent Order, with payment, is to be mailed or delivered to the address below:
Oklahoma New Motor Vehicle Commission
4334 NW Expressway, Suite 183
Oklahoma City, OK 73116.
Questions about enforcement documents can be communicated to the Executive Director or the ONMVC's Prosecutor, The Prosecutor's contact information will be included with the Consent Order.
ACCEPTANCE OR REJECTION BY THE COMMISSION
The ONMVC staff makes every effort to produce Consent Orders acceptable to the Commission, but there may be occasions when the Commission chooses to reject a Consent Order, even if it has been accepted by the dealer. The Commisson may decide to request additional information, increase / decrease penalty amounts, or may decide to reject an Order altogether and proceed to a Hearing. These decisions are within the authority of the Commission as provided by O.S. 47 § 563 (F).
If a Hearing is scheduled, either by Board rejection of a Consent Order, rejection by the dealer or by action of the Commission, the dealer will be provided the opportunity to be heard and will be provided all rights afforded by the Oklahoma Adminsistrative Procedures Act. Dealers must be represented by an attorney in Hearings at thier own expense. *Massongill v. McDevvitt, 1989 OK CIV APP 82.
ENFORCEMENT ACCORDING TO A PENALTY SCALE
Enforcement of advertising rules will be administered according to Parts 1 and 2 of the penalty scale shown below..
The ONMVC Advertising Rule enforcement penalty scale consists of 2 Parts, Each part is based on a specific set of rules.
Part 1 consists of 3 steps and features fixed Consent Order / Fine amounts. Consent Orders are offered at the ONMVC's discretion. A Hearing may be called for any enforcement step level. Part 1 does not include a warning step.
| Enforcement Level | COMMISSION ACTION | |
|---|---|---|
| Level 1 - First Enforcement Step | Notice of Complaint and Hearing | Offer of $3,000 Consent Order at the ONMVC's Discretion. |
| Level 2 - Second Enforcement Step | Notice of Complaint and Hearing | Offer of $6,000 COnsentOrder at the ONMVC's Discreation. |
| Level 3 - Third Enforcement Step | Notice of Complaint and Hearing | No Offer of Consent Order. Automatic Hearing. |
Part 1 applies to the following advertising rules: 465: 15-3-4 Bait advertisiemt (insincere pricing), 465: 15-3-6 Manufacturers suggested retail price, 465: 15-3-7 Dealer price advertising. Each rule violation is enforced and tracked separately. The penalty history for violations of Part rules will reset after one year, per rule, if there have been no further violations. The ONMVC may offer a Consent Order at any level but is not obligated to do so. A hearing may be called at any enforcement level.
Part 2 features an initial "Warning Step" with a 48 hour opportunity to cure the violation. When an ONMVC investigator discovers a Part 2 rule violation, a warning is sent to the dealer. The dealer is provided 48 hours to cure the violation. Cure progress will be monitored, but the dealer is responsible for notifying the ONMVC when the advertising violation has been cured. If not cured within 48 hours, enforcement moves to the Level 1 enforcement step within Part 2, and a complaint is sent to the dealer. Further violations of the same rule will move the dealer through enforcement scale Levels 2 and 3. Consent Orders are offered at the ONMVC's discretion but a hearing may be called for any enforcement step level. Part 2 also now features fixed Consent Order / Fine amounts.
| Enforcement Level | COMMISSION ACTION | |
|---|---|---|
| Warning Step. Dealer provided 48 hours to Cure Uopn Notification | Warning Letter and Email Sent to Dealer | Commission Review. Dealer must provide proof of complaince. If the violation has not been cured within 48 hours, the case proceeds to the Level 1 - Forst Enforcement Step. Any further violation of the specific rule within one year and next enforcement action for that rule begins at Level 1. |
| Level 1 - First Enforcement Step | Notice of Complaint and Hearing | Offer of $3,000 Consent Order at the ONMVC's discretion. |
| Level 2 - Second Enforcement Step | Notice of Complaint and Hearing | Offer of $6,000 Consent Order at the ONMVC's discretion. |
| Level 3 - Third Enforcement Step | Notice of Complaint and Hearing | No offer of Consent Order. Automatic Hearing. |
Part 2 applies to the following advertising rules: 465: 15-3-2 Avaialbility of vehicles, 465: 15-3-3 Accuracy (Disclosures & Disclaimers), 465: 15-3-5 Layour, 465: 15-3-8 Identification, 465: 15-3-10 Auction, 465: 15-3-11 Authorized dealer, 465: 15-3-12 Lease advertisements, 465: 15-3-13 Closed ended credit terms, 465: 15-3-14 Prohibited statements, 465: 15-3-15 Dealership name, 465: 15-3-16 Number one claims (Proposed new rule). Each rule violation is enforced and tracked separately. The penalty history for violations of Part 2 rules will reset after one year, per rule, if there have been no further violations. The ONMVC may offer a Consent Order at any level but is not obligated to do so. A hearing may be called at any enforcement level.
