Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 30 - Division of Motor Vehicles
Subchapter 20 - Dealer Licensing and Registration
Part 1 - Dealers, Manufacturers, and Rental Licenses
Section 280-RICR-30-20-1.9 - Advertising

1. All advertising for the sale or purchase of any motor vehicle must disclose the licensed business name and address of the dealer, except classified advertisements, which need only contain the dealer's license number.

1. No dealer shall advertise the price of motor vehicles unless such price is the full delivered price. Charges for freight, handling, vehicle preparation, overhead expenses, consultation fees, or any other fees that are inconsistent with these rules shall not be used in advertising nor included on the bill of sale.

2. When the price of a motor vehicle is quoted, the advertisement shall clearly identify the motor vehicle as to make, year and model.

3. The word "wholesale" shall not be used in retail motor vehicle advertising to imply that motor vehicles are being offered to the general public at "wholesale prices".

4. The price of motor vehicles shall not be advertised in relation to the vehicles "dealer cost", or words of similar meaning. "Invoice price" may be used provided the dealer provides the Department with the invoice issued from the manufacture substantiating any statements the dealer makes in advertising the vehicles prior to the use of "Invoice price" in any and all advertisements.

5. No dealer shall offer a motor vehicle with "cash rebates" or words of similar meaning, unless such rebate is in the form of a cash incentive given directly to the consumer from the manufacturer or distributor of said motor vehicle.

6. No price shall be used in the advertising for sale of motor vehicles unless a vehicle or vehicles are actually available at the price stated and as described. Whenever a price is advertised for a new motor vehicle, the stock number of that vehicle must be conspicuously placed in the ad, unless it is clearly stated that the vehicle may be ordered at such a price. If the ad states that the vehicle must be ordered and is not in stock, it must also state an approximate reasonable delivery date based on actual recent experience with delivery time for that particular make and model of vehicle.

7. Unsupported underselling claims are viewed as not in the public interest and shall not be used because it is obvious that no dealer can be fully informed about every competitor's prices at all times. This pertains to such statement as: "Our prices are guaranteed lower than elsewhere", "Money refunded if you can duplicate our values", "We guarantee to sell for less", "Highest trade-in allowance", "We give $300.00 more in trade than any other dealer", etc.

8. Use of telegrams, cards, circulars, letters or other advertising containing such offered as "Would You Take $..", "If I Could Get You $...For Your Car", are condemned as deceptive and detrimental to the public's interest. Such devices have invariably been found to be inaccurate and to have been used unfairly to attract purchasers who were not given the trade allowances quoted.

9. Statements such as "Write Your Own Deal", "Name Your Price", "Name Your Own Monthly Payments", "Appraise Your Own Car", and phrases of similar import shall not be used.

1. Bait and switch advertising and selling practices shall not be used. A motor vehicle advertised at a specific price shall be in the possession of the advertiser and conspicuously displayed at the address given, unless the ad clearly states the vehicle must be ordered. It shall be willingly shown, demonstrated and sold or, as to a new motor vehicle floor model, orders shall be taken for future delivery of the identical model at the advertised price and terms. If the specific model advertised at a designated price is not available, as it has been sold subsequent to the placing of the ad, the advertiser shall, upon request of any interested buyer, show sales records of the advertised motor vehicle or motor vehicles which allegedly have been sold.

1. Bushing is the practice of increasing the selling price of a car that was originally quoted to the purchaser, after the purchaser has made an initial payment, either with money or with a trade-in, or signed a contract. Such practice of bushing or similar practice is deceptive, not in the public interest, and shall not be used.

1. No specific price shall be stated in an advertisement as an offer for a trade-in, if the price so stated is contingent upon the condition, model, or age of the prospective buyer's motor vehicle, without so stating in the advertisement. The use of phrases such as "up to", "as much as", etc. shall not be considered an adequate explanation. Notwithstanding any provisions to the contrary in a retail sales agreement, no dealer shall decrease the value to a trade-in previously made part of a sales agreement because of additional depreciation from the time of the agreement until delivery of the new vehicle. This shall not exclude a dealer from re-evaluating a trade-in because of damage to the vehicle or removal of equipment after the sales agreement was entered into but before delivery of the new vehicle is completed.

1. When a used car of the current or previous year series is advertised in any media, the word USED or USED PROGRAM CAR must be shown as the prefix to the model year in the same size type. The stock number and current mileage shall also appear. EXAMPLE: Used (year) (make) (model) (stock number) (mileage)

1. The term "repossessed" shall be used only to describe such motor vehicles as have been presently and directly taken back from a purchaser. Advertisers offering repossessed cars for sale shall be willing to offer proof of such repossessions. An amount quoted as an unpaid balance shall be the full selling price unless otherwise stated.

1. No dealer shall charge its new car customers for "dealer prep" or other specified pre-delivery services when the manufacturer or distributor of the vehicle in question has agreed to reimburse dealer for such services, or when the dealer's agreement with the manufacturer or distributor contemplates that the dealer will adequately prepare the vehicle for delivery at no charge to the customer.

1. No equipment, accessories, or other miscellaneous merchandise shall be described as "Free", "No Charge", or words of similar meaning unless such "Free" equipment, accessories, or other miscellaneous merchandise is from a manufacturer sponsored promotion and such promotion is substantiated in writing from the manufacturer and provided to the Department by the dealer prior to the use of "Free" in any and all advertisements. No cash awards or merchandise give-aways shall be offered. Trading stamps may not be offered with the purchase of a motor vehicle. No equipment, accessories or other merchandise shall be described as being available at minimal cost, in an attempt to circumvent this rule. This rule, however, shall not be construed to prevent a dealer from advertising whatever equipment a motor vehicle contains at the advertised price by use of such wording as "every car includes X, Y, Z equipment".

1. "Free Driving Trial" can only mean that the purchaser may drive the car during the trial period and return it to the dealer within the specified period and obtain a refund of all moneys, return of the car traded in, signed agreements or other considerations deposited. The exact terms and conditions of the "Free Driving Trial" shall be set forth in writing and a copy given to the purchaser at the time of sale.

2. "Driving Trial" means that the purchaser may have the use of the car with the understanding that if it is not satisfactory, the amount paid will be applied to any other car in the dealer's stock, of like or greater advertised value. The exact terms and conditions of the "Driving Trial" shall be set forth in writing and a copy given to the purchaser at the time of sale. The car, however, must be returned within the driving trail period, in substantially the same condition as when received.

1. When such words as "Guarantee", "Warranty", or other terms implying protection are used in advertising, explanation shall be given in clear and concise language as to the time and coverage of such guarantee or protection. The purchaser shall be provided with a written document stating the specific terms and coverage therein.

1. No photographs, sketches, cuts, etc. shall be used showing equipment not included in the price quoted unless it is clearly itemized as to which equipment pictured is not included in the quoted price. (Examples: whitewall tires, two-tone paint, deluxe trim, bumper guards, special wheel covers, etc.)