Holiday advertisements

| Industry bulletins

Boxing Day is coming up fast and you may have holiday specials or incentives to offer. However, are you ensuring your advertisements comply with legislation?

The Automotive Business Regulation Section 11(2)(n) states a business operator cannot use false, misleading or deceptive statements in advertisements.

Here are some examples:

  • The advertisement states “never been in an accident” but it has been, then the statement in the advertisement is false.
  • The advertisement states “two per cent interest rate” but does not mention that it only applies to the first year of payments, then the statement in the advertisement is misleading.
  • The advertisement states “test drive a new model”, but the business knows it will not have any new models in stock, then the statement in the advertisement is deceptive.

The all-in price should not include incentives that are not available to every customer, such as a membership card incentive. State the all-in price first, then state prices after certain incentives but not all incentives together if they do not apply to every customer. Then fully disclose who qualifies for each incentive and how it is applied to the price.

Remember, Section 6(4)(o) of the Consumer Protection Act states it is an unfair practice if “a supplier’s representation that a specific price benefit or advantage exists if it does not.”

More information on compliant advertising practices can be found on amvic.org.