Does your automotive business website include a “disclaimer”? If it does, you must make sure the disclaimer statement aligns with all-in advertised pricing legislation as set out in Section 11(2)(l) of the Automotive Business Regulation (ABR). The ABR, Section 11(2)(l) states that businesses must include “[…] in the advertised price for any vehicle the total cost of the vehicle, including, but not limited to, all fees and charges such as the cost of accessories, optional equipment physically attached to the vehicle, transportation charges and any applicable taxes or administration fees, but not including GST or costs and charges associated with financing.”
When you state in a disclaimer that the prices advertised exclude licensing, transportation, or administration fees, that does NOT exempt your businesses from all-in advertised pricing legislation. Under Section 11(2)(n) of the ABR, an automotive business must ensure advertisements do not use false, misleading or deceptive statements.
Businesses using disclaimers should only use “descriptions and make promises only in accordance with actual conditions, situations and circumstances,” as per ABR, Section 11(2)(d). For example, if an automotive business uses a photo of a vehicle with a roof rack in their website advertisement, but then uses a disclaimer stating “vehicles may not be exactly as shown” so they can charge extra for the rack instead of including it in the all-in advertised price, this is a violation of the law and contrary to ABR Sections 11(2)(d) and 11(2)(l).
The Director of Fair Trading (as delegated) previously issued an Administrative Penalty that states: “Misleading consumers to believe the Supplier can tell them the advertised price is not the price of the vehicle, and added fees that do not fall within Section 11(2)(l) of the ABR can potentially put consumers into a transaction where they are paying over the advertised price because they do not understand the legislative requirements the Supplier must adhere to, and have been misled to believe the Supplier can and does do this in their transactions with consumers based on their advertising.”
While the Director agrees it is important that consumers understand the paperwork in relation to their transaction, explaining the extra fees to the consumer does not make it okay. It is a requirement of the Supplier to ensure they are adhering to the legislation.
Remember, your automotive business is responsible and accountable for advertisements that are published for the purposes of your business activities as per Section 166 of the Consumer Protection Act. You can find business advertising resources in AMVIC’s advertising toolkit page on amvic.org.