Are you an advertising expert? How about when it comes to social media?  Test your knowledge and see how you rank.

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How well do you know automotive advertising laws?

*Note: Click on the Answer section to reveal the correct answer to the question.*

1. Automotive advertising laws apply to all ads posted on social media.

True: Ads on social media and online must comply with all advertising laws.

False: Only ads posted to Facebook must comply with all advertising laws.

Answer

Answer: True. An advertisement is a public announcement advertising goods or services and all automotive advertisements must comply with all legislation including the Fair Trading Act and regulations.

2. Does a businesses’ social media account name need to match with the name on its AMVIC licence?

a. The name of the social media account is not required to be an exact match so long as the name or trade name of the business operator as set out in the licence is indicated in a conspicuous manner on the social media account page.

b. The name of the social media account must be an exact match.

c. Automotive businesses cannot advertise on social media.

Answer

Answer: a

Section 11(1)(a) of the Automotive Business Regulation states every business operator must ensure that the business operator’s advertising indicates the name of the business operator or the trade name of the business operator as set out in the licence.

3. Does an ad on social media for a specific vehicle need to include the stock number?

a. The Automotive Business Regulation does not apply to ads on social media.

b. Yes, the ad must include the stock number.

c. No, the stock number is not required.

Answer

Answer: b. Yes.

The ad must include the stock number of the specific vehicle that is advertised as being available for sale at the time the ad is placed (Automotive Business Regulation, section 11(2)(m) ).

4. Can the vehicle price be excluded from an ad on social media?

a. It is the supplier’s choice whether or not to display the price. However, if credit is offered, you must include the price.

b. The price must always be included.

c. It is the supplier’s choice whether or not to display the price regardless if credit is offered or not.

Answer

Answer: a. It is the supplier’s choice whether or not to display the price.

However, if the ad is offering credit for a specific vehicle, the ad must also include the all-in price. In addition, if the ad offers credit and states the interest rate or amount of payment, the ad must also state the APR and term. (Cost of Credit Disclosure Regulation, section 6).

5. Can I hold a contest through social media?

a. No, all contests must be held through the licensee’s website or in person.

b. Yes, but a supplier must be transparent with the terms and conditions of the contest and not mislead or deceive the consumer on contest rules, eligibility and prizes.

c. Yes, but as long as the prize is not a cash prize, the terms and conditions do not have to be fully disclosed.

Answer

Answer: b. Yes, but a supplier must be transparent with the terms and conditions of the contest and not mislead or deceive the consumer on contest rules, eligibility and prizes.

The Fair Trading Act states that it is an unfair practice for a supplier to do or say anything that might reasonably deceive or mislead a consumer (Fair Trading Act, section 6(4)(a) ).

6. Can a salesperson advertise vehicles on behalf of a licensed business on his or her personal social media account?

a. Yes, but the vehicles being advertised must be for sale through an automotive business licensed for retail sales and the ad must comply with all advertising laws.

b. Yes, but the advertisement must clearly indicate in a conspicuous manner the name of business and that the business is AMVIC-licenced.

c. Yes, but the individual must be a registered salesperson that is authorized to act on behalf of the licensed automotive business.

d. All of the above.

Answer

Answer: d.

The ad must clearly indicate in a conspicuous manner the name of business and that the business is AMVIC-licenced (Automotive Business Regulation, section 11). Anyone who solicits, negotiates or concludes a sale on behalf of an automotive business must be registered and authorized by the business to act on its behalf.

If you answered:

  • All six correct: Expert!
  • Four or five correct: Almost an expert.
  • Three or fewer correct: Good attempt.

Want to learn more? AMVIC has a number of advertising resources available at amvic.org including:

AMVIC’s Salesperson Fair Trading Act Course and the Service and Repair Course both include modules specifically on advertising.