IT IS THE OBJECTIVE OF THESE STANDARDS TO IMPLEMENT THE INTENT OF THE LEGISLATURE BY PROVIDING FOR THE REGULATION OF THE ADVERTISING BY LICENSED NEW MOTOR VEHICLE DEALERS, MANUFACTURERS, AND DISTRIBUTORS, IN THE INTEREST OF FURTHERING TRUTHFUL AND ACCURATE ADVERTISING PRACTICES FOR THE BENEFIT OF THE CITIZENS OF THE STATE OF MISSISSIPPI.

THE FOUNDATION FOR THESE STANDARDS LIES IN THE BETTER BUSINESS BUREAU'S "CODE OF ADVERTISING",THE BASIC PRINCIPLES OF WHICH ARE:

(a) THE PRIMARY RESPONSIBILITY FOR TRUTHFUL AND NONDECEPTIVE ADVERTISING RESETS WITH THE ADVERTISER. ADVERTISERS MUST BE PREPARED TO SUBSTANTIATE ANY OR OFFERS MADE BEFORE PUBLICATION OR BROADCAST AND, UPON REQUEST, PRESENT SUCH SUBSTANTIATION.

(b) ADVERTISEMENTS WHICH ARE UNTRUE, MISLEADING, DECEPTIVE, FRAUDULENT, UNTRUTHFULLY DISPARAGING OF COMPETITORS, OR INSINCERE OFFICERS TO SELL, SHALL NOT BE USED.

(c) ADVERTISEMENTS SHOULD ADVISE CUSTOMERS OF FACTS AND QUALITIES OF A PRODUCT THAT WILL ALLOW A MORE INTELLIGENT CHOICE.

(d) AN ADVERTISEMENT AS A WHOLE MAY BE MISLEADING ALTHOUGH EVERY SENTENCE SEPARATELY CONSIDERED IS LITERALLY TRUE. MISREPRESENTATION MAY RESULT NOT ONLY FROM DIRECT STATEMENTS BUT BY OMITTING OR OBSCURING MATERIAL FACTS.

ADVERTISERS, ADVERTISING AGENCIES AND MEDIA SHOULD ALSO BE SURE THAT THEY COMPLY WITH FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS AS THEY RELATE TO ADVERTISING AND SELLING PRACTICES.

THE FTC REGULATES CREDIT ADVERTISING UNDER THE FEDERAL TRUTH-IN- LENDING ACT: REGULATION Z. CONSUMER LEASING IS REGULATED UNDER TRUTH-IN-LENDING ACT: REGULATION M. THE ATTORNEY GENERAL'S OFFICE OPERATES UNDER BROAD POWERS THAT SIMPLY SAY, "UNFAIR METHODS OF ANT TRADE OR COMMERCE ARE UNLAWFUL." INCLUDED FOLLOWING THE STANDARDS OUTLINED IN REGULATION FOUR ARE SAMPLES OF REGULATION Z AND M AND A FEW EXAMPLES OF BOTH PROPER AND IMPROPER ADS.

ADMENDED 8-15-99

BAIT ADVERTISING

"BAIT" ADVERTISING IS AN UNFAIR AND DECEPTIVE PRACTICE AND SHALL NOT BE USED BY ANY LICENSEE. BAIT ADVERTISING IS AN ALLURING BUT SINCERE OFFER TO SELL A PRODUCT, THE PRIMARY PURPOSE OF WHICH IS TO OBTAIN LEADS TO PERSONS INTERESTED IN BUYING MERCHANDISE OF THE TYPE ADVERTISED AND TO SWITCH CONSUMERS FROM BUYING THE ADVERTISED PRODUCT IN ORDER TO SELL SOME OTHER PRODUCT AT A HIGHER PRICE OR ON A BASIS MORE ADVANTAGEOUS TO THE ADVERTISER. ADVERTISING A NEW MOTOR VEHICLE AT A PRICE WHICH DOES NOT INCLUDE ALL EQUIPMENT LISTED AS STANDARD EQUIPMENT BY THE MANUFACTURER OR DISTRIBUTOR WITHOUT DISCLOSING SUCH FACT, OR ELIMINATING ANY SUCH EQUIPMENT FOR THE PURPOSE OF ADVERTISING A LOW PRICE AND "BAITING" THE CUSTOMER INTO CHANGES ABOVE THE ADVERTISED PRICE IS PROHIBITED AS MISLEADING AND DECEPTIVE.

AVAILABILITY OF VEHICLES

WHERE A SPECIFIC VEHICLE IS ADVERTISED BY A DEALER AS BEING FOR SALE, THAT VEHICLE SHOULD BE IN THE POSSESSION OF THE DEALER AND SHOULD BE WILLINGLY SHOWN AND SOLD AS ADVERTISED, ILLUSTRATED, OR DESCRIBED AT THE ADVERTISED PRICE AND TERMS, AT THE ADVERTISED ADDRESS. A DEALER SHOULD HAVE ON HAND A REASONABLE EXPECTABLE PUBLIC DEMAND OF ALL VEHICLES ADVERTISED WITH THE EQUIPMENT ADVERTISED AT THE PRICE ADVERTISED. IF AN ADVERTISEMENT PERTAINS TO ONE SPECIFIC VEHICLE ONLY, THIS FACT SHOULD ALSO BE DISCLOSED AND A STOCK NUMBER IDENTIFYING THE VEHICLE SHOULD BE DISCLOSED IN THE ADVERTISEMENT. IN THE EVENT THAT A DEALER DOES NOT HAVE A REASONABLE EXPECTABLE PUBLIC DEMAND OF VEHICLES ADVERTISED, THE ADVERTISEMENT SHOULD DISCLOSE THAT QUANTITY IS LIMITED. THIS PROVISION SHOULD NOT BE CONSTRUED TO PROHIBIT GENERAL ADVERTISING OF VEHICLES BY A MANUFACTURER OR DISTRIBUTOR AND THE INCLUSION THEREIN OF THE NAMES AND ADDRESS OF THE DEALERS SELLING SUCH VEHICLES IN THE PARTICULAR AREA.

UNTRUE CLAIMS

THE FOLLOWING STATEMENTS SHALL NOT BE USED IN ANY ADVERTISING BY ANY DEALER:

(1) STATEMENTS SUCH AS "WRITE YOUR OWN DEAL", "NAME YOUR OWN PRICE", "NAME YOUR OWN MONTHLY PAYMENTS", OR STATEMENTS WITH SIMILAR MEANING.

(2) STATEMENTS SUCH AS "EVERYBODY FINANCED", "NO CREDIT REJECTED", "WE FINANCE ANYONE", ALL APPLICATION ACCEPTED AND OTHER SIMILAR STATEMENTS REPRESENTING OR IMPLYING THAT NO PROSPECTIVE CREDIT PURCHASER WILL BE REJECTED BECAUSE OF HIS INABILITY TO QUALIFY FOR CREDIT.

(3) STATEMENTS REPRESENTING THAT NO OTHER DEALER GRANTS GREATER ALLOWANCES FOR TRADE-INS, HOWEVER STATED, UNLESS SUCH IS THE CASE AND INFORMATION IS PROVIDED TO THE COMMISSION BEFORE THE AD IS RUN.

(4) STATEMENTS REPRESENTING THAT BECAUSE OF ITS LARGE SALES VOLUME A DEALER IS ABLE TO PURCHASE VEHICLES FOR LESS THAN ANOTHER DEALER SELLING THE SAME MAKE OF VEHICLES, UNLESS SUCH IS THE CASE AND INFORMATION IS PROVIDED TO THE COMMISSION BEFORE THE AD IS RUN.

INCLUSION IN PRICE AND ADD-ONS

WHEN THE PRICE OF A VEHICLE IS ADVERTISED IN A LOCAL MEDIA, THE VEHICLES SHALL BE FULLY IDENTIFIED AS TO YEAR, MAKE, MODEL, AND IF NEW,USED,OR LEASE. IN ADDITION, THE STATED PRICE MUST INCLUDE ALL CHARGES WHICH THE CUSTOMER MUST PAY FOR THE VEHICLE, INCLUDING BUT NOT LIMITED TO, "FREIGHT" OR "DESTINATION CHARGES", "DEALER PREPARATION", "DEALER HANDLING", "ADDITIONAL DEALER PROFIT", "ADDITIONAL DEALER MARGIN", AND "UNDERCOATING OR RUST PROOFING" IF THE VEHICLE IS ALREADY SO EQUIPPED. THE ADVERTISED PRICE NEED NOT INCLUDE STATE AND LOCAL TAXES, TAGS, REGISTRATION, TITLE FEES, AND INSURANCE.

MINIMUM TRADE-IN ALLOWANCES

SINCE THE AMOUNT OF TRADE-IN ALLOWANCE WILL VARY DEPENDING ON THE CONDITION, MODEL, AND AGE OF A BUYER'S VEHICLE, NO SPECIFIC TRADE-IN AMOUNT OR RANGE OF AMOUNTS SHALL BE USED IN ADVERTISING.

DISCLOSURE OF MATERIAL FACTS

ANY DISCLOSURES ABOUT MATERIAL FACTS WHICH ARE CONTAINED IN ADVERTISEMENTS AND WHICH INVOLVE TYPES OF VEHICLES AND TRANSACTIONS MUST BE MADE IN A CLEAR AND CONSPICUOUS MANNER TO MINIMIZE THE POSSIBILITY OF MISUNDERSTANDING BY THE AUDIENCE. FACTORS TO BE TAKEN INTO CONSIDERATION INCLUDE, BUT ARE NOT LIMITED TO, AD LAYOUT, HEADLINES, ILLUSTRATIONS, TYPE SIZE, CONTRAST, CRAWL SPEED, AND EDITING. COMMONLY KNOWN ABBREVIATIONS MAY BE USED IN ADVERTISING; HOWEVER, THOSE NOT GENERALLY KNOWN SHALL BE AVOIDED.

AN ASTERISK

AN ASTERISK MAY BE USED TO GIVE ADDITIONAL INFORMATION ABOUT A WORD OR TERM; HOWEVER, USE OF ONE OR MORE FOOTNOTES OR ASTERISKS WHICH, ALONE OR IN COMBINATION, CONTRADICT, CONFUSE, MATERIALLY MODIFY OR UNREASONABLY LIMIT A PRINCIPAL MESSAGE OF THE AD SHOULD NOT BE USED.

A) USED VEHICLES-VEHICLES OF THE CURRENT AND ANY PRECEDING MODEL YEAR WHICH ARE "USED" SHALL BE CLEARLY IDENTIFIED AS SUCH.

B) WHENEVER ANY ADVERTISEMENT RELATES TO A LEASE, THE ADVERTISEMENT MUST MAKE READILY APPARENT(IN THE BODY OF THE AD AND NOT THE DISCLAIMER) TO THE AUDIENCE THAT THE TRANSACTION ADVERTISED IS A LEASE.

C) CREDIT TERMS-WHEN CREDIT TERMS ARE ADVERTISED, THEY MUST COMPLY WITH THE SPECIFIC DISCLOSURE REQUIREMENTS OF THE CREDIT ADVERTISING PROVISIONS OF THE "TRUTH IN LENDING" ACT AND REGULATION Z.

D) LEASE TERMS-WHEN LEASE TERMS ARE ADVERTISED, THEY MUST COMPLY WITH THE SPECIFIC DISCLOSURE REQUIREMENTS OF THE LEASE ADVERTISING PROVISIONS OF THE "TRUTH IN LENDING" ACT AND REGULATION M.

E) TELEVISION DISCLOSURES-ANY DISCLOSURE APPEARING IN TELEVISION ADVERTISEMENTS MUST CLEARLY FEATURE ALL NECESSARY INFORMATION IN A MANNER THAT CAN BE READ AND UNDERSTOOD.

DISCLOSURE IN INVOICE ADS

THE TERMS "INVOICE", "FACTORY INVOICE", "DEALER INVOICE" OR "DEALER COST" SHALL NOT BE USED AS A REFERENCE PRICE (SUCH AS, UT NOT LIMITED TO, $100 OVER INVOICE OR DEALER COST).

DISCOUNTS

WHEN AN AUTOMOTIVE ADVERTISEMENT CONTAINS AN OFFER OF A DISCOUNT ON A NEW VEHICLE, THE AMOUNT OF SUCH DISCOUNT MUST BE STATED WHO IS GIVING THE DISCOUNT BY REFERENCE TO THE ACTUAL DOLLAR FIGURE TO THE MANUFACTURER'S SUGGESTED RETAIL PRICE OF THE VEHICLE. DISCOUNT MUST NOT IMPLY THE SELLING PRICE TO BE BELOW THE DEALERS COST.

REBATE,CASH REBATE,CASH INCENTIVESOR SIMILAIR TERMS OFFERS

THE TERMS "REBATE", "CASH REBATE", CASH INCENTIVES OR SIMILAR TERMS MAY BE USED ONLY WHEN IT IS CLEARLY STATED WHO IS MAKING THE PAYMENT. SUCH ADVERTISEMENTS MUST ALSO STATE THAT "MAY AFFECT FINAL NEGOTIATED PRICE" AND CUSTOMER HAS THE OPTION TO DETERMINE HOW IT IS APPLIED IN THE SALE PROCESS. REBATES,CASH REBATE,CASH INCENTIVES OR SIMILAR TERMS MUST NOT IMPLY THE SELLING PRICE TO BE BELOW DEALERS COST.

FREE OFFER

A)THE WORD "FREE" MAY BE USED IN ADVERTISING WHENEVER THE ADVERTISER IS OFFERING AN UNCONDITIONAL GIFT.

B) THE "FREE" OFFER MUST BE TEMPORARY; OTHERWISE, IT WOULD BECOME A CONTINUOUS COMBINATION OFFER, NO PART OF WHICH IS FREE.

BUY-DOWN INTEREST RATES

NO BUY-DOWN INTEREST RATE MAY BE ADVERTISED IF ANY OF THE COSTS OF SECURING THE BUY-DOWN ARE PASSED ON TO THE CUSTOMER IN ANY WAY, UNLESS THE DEALER DISCLOSES THAT CONTRIBUTION BY THE DEALERSHIP MAY INCREASE THE NEGOTIATED PRICE OF THE VEHICLE TO THE CONSUMER.

LIST OR STICKER PRICE

WHERE THE WORDS "LIST" OR "STICKER" OR WORDS OF SIMILAR IMPORT ARE USED IN A NEW AUTOMOTIVE ADVERTISEMENT, THEY SHOULD ONLY REFER TO THE ACTUAL DOLLAR FIGURE OF THE MANUFACTURER'S SUGGESTED RETAIL PRICE.

SPECIAL STATUS OF DEALERSHIP

AN AUTOMOTIVE ADVERTISEMENT SHOULD NOT FALSELY IMPLY THAT THE DEALER HAS A SPECIAL SPONSORSHIP, APPROVAL STATUS, AFFILIATION, OR CONNECTION WITH THE MANUFACTURE THAT IS GREATER OR MORE DIRECT THAN ANY OTHER LIKE DEALER.

CLAIMS OF UNDER SELLING

ANY AUTOMOTIVE ADVERTISEMENTS WHICH MAKES UNDER SELLING CLAIMS SHOULD BE CAPABLE OF BEING SUBSTANTIATED.

PRICE EQUALING

AN ADVERTISEMENT WHICH EXPRESSES A POLICY OF MATCHING OR BETTERING COMPETITORS' PRICES SHOULD FULLY DISCLOSE ANY CONDITIONS WHICH APPLY AND SPECIFY WHAT EVIDENCE A CONSUMER MUST PRESENT TO TAKE ADVANTAGE OF THE OFFER. SUCH EVIDENCE SHOULD NOT PLACE AN UNREASONABLE BURDEN ON THE CONSUMER SUCH AS PRODUCING A SIGNED CONTRACT FROM ANOTHER DEALER OR REQUIRING THE CONSUMER TO FIND A VEHICLE WITH SUCH IDENTICAL FEATURES THAT THE POSSIBILITY OF DOING SO IS HIGHLY UNLIKELY.

MANUFACTURER'S SUGGESTED RETAIL PRICE

THE SUGGESTED RETAIL PRICE DOLLAR FIGURE OF A NEW MOTOR VEHICLE WHEN ADVERTISED BY A MANUFACTURER, DISTRIBUTOR OR REGIONAL AD ASSOCIATION SHALL INCLUDE ALL COSTS AND CHARGES FOR THE VEHICLE ADVERTISED, EXCEPT THAT DESTINATION, AND STATE AND LOCAL TAXES, TITLE, AND LICENSE FEES MAY BE EXCLUDED FROM SUCH PRICE, PROVIDED THAT THE ADVERTISEMENT CONSPICUOUSLY STATES THAT SUCH COSTS AND CHARGES ARE EXCLUDED. HOWEVER, WITH RESPECT TO ADVERTISEMENTS PLACED WITH LOCAL MEDIA IN MISSISSIPPI BY A DEALER, SUCH PRICE MUST INCLUDE ALL COSTS AND CHARGES FOR THE VEHICLE ADVERTISED INCLUDING DESTINATION CHARGES, AND MAY EXCLUDE ONLY STATE AND LOCAL TAXES, LICENSE, TITLE FEES AND INSURANCE.

LEASE, BALLOON OR RESIDUAL ADVERTISEMENTS

VEHICLE LEASE ADVERTISEMENTS SHALL CLEARLY AND CONSPICUOUSLY DISCLOSE THAT THE ADVERTISEMENT IS FOR THE LEASE OF A VEHICLE,

AND NO BALLOON OR RESIDUAL NOTES IS DUE AT EXPIRATION OF THE LEASE AND THE CUSTOMER HAS THE OPTION TO BUY THE VEHICLE AT THE RESIDUAL PRICE, OR TURN VEHICLE IN.

CONSOLIDATED LOANS

CREDIT TERMS WHICH PURPORT TO CONSOLIDATE OTHER BILLS WITH NEW CAR FINANCING, SHALL NOT BE ADVERTISED.

VAN CONVERSION ADVERTISEMENTS

IN THE CASE OF A MODIFIED VEHICLE, SUCH AS A CONVERTED VAN, THE DEALER MAY ADVERTISE USING THE CONVERSION FIRMS NAME AND REFER TO THE CHASSIS MANUFACTURER, BUT IN NO CASE SHOULD THE DEALER ADVERTISE VANS SOLELY BY A CHASSIS MANUFACTURERS NAME UNLESS ENFRANCHISED TO SELL THAT MAKE OF VEHICLE.

DEMONSTRATORS, EXECUTIVES,OFFICIALS,AND PROGRAM VEHICLES

THE WORD "DEMONSTRATOR" SHALL BE UNDERSTOOD TO REFER TO A VEHICLE WHICH HAS NEVER BEEN SOLD OR LEASED TO A MEMBER OF THE PUBLIC. THIS TERM SHALL INCLUDE VEHICLES USED BY NEW VEHICLE DEALERS OR THEIR PERSONNEL FOR DEMONSTRATING PERFORMANCE ABILITY BUT NOT VEHICLES PURCHASED AND USED AS THEIR PERSONAL VEHICLES. DEMONSTRATORS MAY BE ADVERTISED FOR SALE AS SUCH ONLY BY A DEALER FRANCHISED FOR THE SALE OF SUCH MAKE OF NEW VEHICLES. "EXECUTIVES" "OFFICIALS" OR "PROGRAM VEHICLES, WHEN SO ADVERTISED, SHALL HAVE BEEN USED EXCLUSIVELY BY EXECUTIVES OF THE DEALER'S FRANCHISING MANUFACTURER OR DISTRIBUTOR, OR BY AN EXECUTIVE OF THE FRANCHISED DEALERSHIP. THESE VEHICLES, SO ADVERTISED, SHALL NOT HAVE BEEN SOLD OR LEASED TO A MEMBER OF THE PUBLIC PRIOR TO THE APPEARANCE OF THE ADVERTISEMENT. "DEMONSTRATORS", "EXECUTIVES", AND "OFFICIALS" VEHICLES SHALL BE CLEARLY AND PROMINENTLY QUALIFIED AS SUCH IN IMMEDIATE CONJUNCTION WITH YEAR, MAKE, AND MODEL OFFERED.

AUCTION

TERMS SUCH AS "AUCTION" OR "AUCTION SPECIAL" AND OTHER TERMS OF SIMILAR IMPORT SHALL BE USED IN CONNECTION WITH VEHICLES OFFERED OR SOLD AT A BONA FIDE AUCTION AND AUCTIONEER LICENSE NUMBER GIVEN.

LAYOUT: TYPE SIZE

THE LAYOUT, HEADLINES, ILLUSTRATIONS, OR TYPE SIZE OF A PRINTED ADVERTISEMENT AND THE BROADCAST WORDS OR PICTURES OF RADIO/TV ADVERTISEMENTS SHALL NOT COVEY OR PERMIT AN ERRONEOUS OR MISLEADING IMPRESSION AS TO WHICH VEHICLE OR VEHICLES ARE OFFERED AT FEATURED PRICES. NO ADVERTISED OFFER, EXPRESSION, OR DISPLAY OF PRICE, TERMS, DOWN PAYMENT, TRADE-IN-ALLOWANCE, CASH DIFFERENCE, SAVINGS OR OTHER SUCH MATERIAL TERMS SHALL BE MISLEADING AND ANY NECESSARY QUALIFICATIONS SHALL BE CLEARLY, CONSPICUOUSLY, AND ACCURATELY SET FORTH TO PREVENT MISUNDERSTANDING. FOR PURPOSES OF THESE RULES, QUALIFYING TERMS AND PHRASES WILL BE CONSIDERED TO BE CLEARLY, CONSPICUOUSLY, AND ACCURATELY SET FORTH IF THEY ARE: (1) IN BOLD PRINT AND TYPE OF SUCH SIZE THAT IS CAPABLE OF BEING READ WITHOUT UNREASONABLE EXTRA EFFORT: (2) EXPRESSED IN TERMS THAT ARE UNDERSTANDABLE TO THE BUYING PUBLIC: AND (3) IN CLOSE PROXIMITY TO THE QUALIFIED REPRESENTATION AND NOT SEPARATED OR BURIED BY ASTERISK IN SOME OTHER PART OF THE ADVERTISEMENT.

LIQUIDATION SALE

USE OF TERMS "LIQUIDATION SALE", "PUBLIC NOTICE", "PUBLIC SALE" OR SIMILAR TERMS USED TO CONNOTE OR IMPLY A COURT ORDERED OR OTHER FORCED LIQUIDATION OF ASSETS SHALL NOT BE ADVERTISED, UNLESS SUCH IS THE CASE.

CHANGES IN MONTHLY PAYMENTS

CONDITION(S) INVOLVING A CHANGE OF MONTHLY PAYMENTS, MUST BE MADE READILY APPARENT(IN THE BODY OF THE AD THAT'S APPLICABLE) - SIZE 1O POINTS AND MUST NOT BE REFERENCED BY AN ASTERISK AND/OR FOOTNOTE).

DEFERRED PAYMENTS

NO ADVERTISEMENT SHALL OFFER TO DEFER THE FIRST PAYMENT ON A CREDIT SALE OR LEASE BEYOND THE HISTORIC AND ACCEPTED 45 DAY SELECTIVE MATURITY DATE UNLESS SUCH ADVERTISED STATES WITH EQUAL PROMINENCE THE FACT THAT THE PURCHASER'S OWN MONEY OR EQUITY WILL BE USED IN IMPLEMENTING SUCH DEFERRED PAYMENT PLAN.

(EXCEPTION: NATIONAL MANUFACTURER AND/OR DISTRIBUTOR PAYMENTPLAN)

REBATES, CASH BACK,CASH INCENTIVES ETC....

WHEN ADVERTISING AN AMOUNT TO BE RETURNED TO THE BUYER, THE BUYER MUST BE MADE AWARE THAT THEY HAVE THE OPTION TO DETERMINE HOW THE DOLLAR FIGURE IS TO BE USED IN THE SALE OR LEASE.