The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Advertisement--An oral, written, graphic, or pictorial statement or representation made in the course of soliciting business, including, without limitation, a statement or representation made in a newspaper, magazine, or other publication, or contained in a notice, sign, poster, display, circular, pamphlet, or letter, or on radio, the Internet, or via an on-line service, or on television. The term does not include direct communication between a dealer or dealer's representative and a prospective purchaser.

2. (2) Advertising provision--

   1. (A) A provision of the Code relating to the regulation of advertising; or
   2. (B) A rule relating to the regulation of advertising adopted pursuant to the authority of the Code.
3. (3) Bait advertisement--An alluring but insincere offer to sell or lease a product of which the primary purpose is to obtain leads to persons interested in buying or leasing merchandise of the type advertised and to switch consumers from buying or leasing the advertised product in order to sell or lease some other product at a higher price or on a basis more advantageous to the advertiser.
4. (4) Balloon payment--Any scheduled payment made as required by a consumer credit transaction that is more than twice as large as the average of all prior scheduled payments except the down payment.
5. (5) Buyers guide--A form as required by the Federal Trade Commission under 16 Code of Federal Regulations, Part 455. This form is to be completed and displayed on the side window of a vehicle that has been driven more than the limited use necessary in moving or road testing a new vehicle prior to delivery to a consumer.
6. (6) Clear and conspicuous--The statement, representation, or term being disclosed is of such size, color, contrast, and audibility and is presented so as to be readily noticed and understood. All language and terms, including abbreviations, shall be used in accordance with their common or ordinary usage and meaning.

7. (7) Dealership addendum--A form which is to be displayed on a window of a motor vehicle when the dealership installs special features, equipment, parts or accessories, or charges for services not already compensated by the manufacturer or distributor for work required to prepare a vehicle for delivery to a buyer. The addendum is to disclose:

   1. (A) that it is supplemental;
   2. (B) any added feature, service, equipment, part, or accessory charged and added by the dealership and the retail price therefore;
   3. (C) any additional charge to the selling price such as additional dealership markup; and
   4. (D) the total dealer selling price. The dealership addendum form shall not be deceptively similar in appearance to the manufacturer's label, which is required to be affixed by every manufacturer to the windshield or side window of each new motor vehicle under the Automobile Information Disclosure Act.
8. (8) Demonstrator--A new motor vehicle that is currently in the inventory of the automobile dealership and used or has been used primarily for test drives by customers and other dealership purposes and so designated by the dealership.
9. (9) Disclosure--Required information that is clear, conspicuous, and accurate.
10. (10) Factory executive/official vehicle--A new motor vehicle that has been used exclusively by an executive or official of the dealer's franchising manufacturer, distributor, or their subsidiaries.
11. (11) Licensee--Any person required to obtain a license from the department.
12. (12) Manufacturer's label--The label required by the Automobile Information Disclosure Act, 15 U.S.C. §§1231-1233, to be affixed by the manufacturer to the windshield or side window of each new automobile delivered to the dealer.
13. (13) On-line service--A network that connects computer users.
14. (14) Rebate or cash back--A sum of money refunded to a purchaser or for the benefit of the purchaser after full payment has been rendered. The purchaser may choose to reduce the amount of the purchase price by the sum of money or the purchaser may opt for the money to be returned to himself or for his benefit subsequent to payment in full.
15. (15) Subsequent violation--Conduct that is the same or substantially the same as conduct the Board has previously alleged to be a violation of an advertising provision.

Source Note:The provisions of this §215.244 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective June 4, 2014, 39 TexReg 4271.