PURPOSE: This rule sets forth requirements to ensure truthful advertising practices by licensees as required in section 301.562, RSMo.

1. (1) Definitions. The following words and terms, when used in this rule, shall have the following meaning, unless the context clearly indicates otherwise:

   1. (A) Advertisement (includes the terms advertise and advertising) shall mean any oral, written, graphic, pictorial, televised, electronic or radio statement made with the purpose of soliciting business;
   2. (B) Clearly and conspicuously shall mean the statement, representation or disclosure is of a size, color, contrast and audibility as to be readily understood or noticed; and
   3. (C) Licensee shall mean a person(s) or entity that has obtained or is required to obtain a license pursuant to sections 301.559 et seq., RSMo.

2. (2) General Prohibition. Licensees may not use any advertisement or solicitation which is false, deceptive, fraudulent or which involves a material misrepresentation of fact.

   1. (A) The identity of licensees must be clearly and conspicuously disclosed in all advertising, including classified advertising, by the name registered with the Department of Revenue.
   2. (B) Licensees must clearly and conspicuously disclose all necessary information in a manner that can be reasonably read and understood (if print is used) or which can be reasonably heard and/or seen and understood (if audio/video is used).

   3. (C) Licensees shall not use initials or abbreviations in any advertisement which are confusing, misleading or not understood by the average consumer. For example—

      1. 1. Licensees may use commonly under-

stood abbreviations, such as AC, AM/FM, auto, air, 2dr, cyl and A.P.R.; and

1. 2. Licensees may not use abbreviations

that are not commonly understood, such as W.A.C. (with approved credit), A.D.P. (additional dealer profit), F.T.B. (first time buyer) or doc fee (document fee).

1. (D) Motor vehicles, boats or trailers advertised for sale shall be in possession of the licensee unless other conditions pertaining to availability are clearly and conspicuously disclosed.
2. (E) An advertisement must clearly and conspicuously identify the year, make and model of each motor vehicle, boat or trailer. The advertised price shall represent the total delivered price, excluding state and local taxes, trade-in allowances or rebates. If a factory or consumer rebate reduces the total delivered price, the terms of such rebate shall be clearly and conspicuously disclosed.

1. (3) Where licensees advertise in group associations, licensees shall be held individually responsible for any violations.

AUTHORITY: sections 301.553 and 301.562, RSMo Supp. 1998.* Original rule filed Nov. 1, 1999, effective May 30, 2000.

*Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; and 301.562, RSMo 1988, amended 1993, 1997.