- (a) Transportation Code, §503.021, prohibits persons from engaging in the business as a dealer, directly or indirectly, including by consignment without a general distinguishing number. "Directly or Indirectly" includes the practice of arranging or offering to arrange a transaction involving the sale of a used motor vehicle for a fee, commission or other valuable consideration.
(b) A buyer referral service, program, plan, club, or any other entity that accepts fees for arranging a transaction involving the sale of a used motor vehicle is required to meet the requirements for and obtain a general distinguishing number unless the referral service, program, plan, or club is operated in the following manner:
- (1) There are no exclusive market areas offered to dealers by the program. All dealers are allowed to participate on equal terms.
- (2) Participation by dealers in the program is not restricted by conditions such as limiting the number of franchise lines or discrimination by size of dealership or location. Total number of participants in the program may be restricted if the program is offered to all dealers at the same time with no regard to the franchise line.
- (3) All participants pay the same fee for participation in the program that shall be a weekly, monthly, or annual fee, regardless of the size, location, or line-make of the dealership.
- (4) A person is not to be charged a fee on a per referral fee basis or any other basis that could be considered a transaction-related fee.
- (5) The program does not set or suggest to the dealer any price of vehicles or trade-ins.
- (6) The program does not advertise or promote its plan in a manner that implies that the buyer, as a customer of that program, receives a special discounted price that cannot be obtained unless the customer is referred through that program.
- (c) All programs must comply with Subchapter H of this chapter (relating to Advertising).
Source Note:The provisions of this §215.85 adopted to be effective February 11, 2010, 35 TexReg 883.