The following words and terms, when used in this subchapter,
shall have the following meanings, unless the context clearly indicates
otherwise.
(1) Advertisement--
(A) An oral, written, graphic, or pictorial statement
or representation made in the course of soliciting business, including,
but not limited to a statement or representation:
(i) made in a newspaper, magazine, or other publication;
(ii) contained in a notice, sign, poster, display,
circular, pamphlet, or letter;
(iii) aired on the radio;
(iv) broadcast on the internet or television; or
(v) streamed via an online service.
(B) Advertisement does not include direct communication
between a person or person's representative and a prospective purchaser.
(2) Advertising provision--
(A) A provision of Occupations Code, Chapter 2301,
relating to the regulation of advertising; or
(B) A rule relating to the regulation of advertising,
adopted pursuant to the authority of Occupations Code, Chapter 2301.
(3) Bait advertisement--An alluring but insincere offer
to sell or lease a product of which the primary purpose is to obtain
a lead to a person interested in buying or leasing merchandise of
the type advertised and to switch a consumer 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 dealer.
(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) 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.
(6) Dealership addendum--A form that is displayed on
a window of a motor vehicle when a 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 motor vehicle for delivery to a buyer.
(A) The purpose of the addendum is to disclose:
(i) that it is supplemental;
(ii) any added feature, service, equipment, part, or
accessory, including the retail price, charged and added by the dealership;
(iii) any additional charge to the selling price such
as additional dealership markup; and
(iv) the total dealer selling price.
(B) The dealership addendum form shall not be deceptively
similar in appearance to the Monroney label, as defined by paragraph
(13) of this section.
(7) Demonstrator--A new motor vehicle that is currently
in the inventory of the automobile dealership and used primarily for
test drives by customers and for other purposes designated by the
dealership.
(8) Disclosure--Required information that is clear,
conspicuous, and accurate.
(9) Distributor Suggested Retail Price (DSRP)--means
the total price shown on the Monroney Label as specified by subparagraph
(D)of paragraph (13) of this section.
(10) Factory executive/official motor 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) Limited rebate--A rebate that is not available
to every consumer purchasing or leasing a motor vehicle because qualification
for receipt of the rebate is conditioned or restricted in some manner.
A rebate conditioned or restricted to purchasers who are residents
of the contiguous United States is not a limited rebate.
(12) Manufacturer's Suggested Retail Price (MSRP)--means
the total price shown on the Monroney Label as specified by subparagraph
(D) of paragraph (13) of this section.
(13) Monroney Label--The label required by the Automobile
Information Disclosure Act, 15 U.S.C. §§1231 - 1233, to
be affixed to the windshield or side window of certain new motor vehicles
delivered to the dealer and that contains information about the motor
vehicle, including, but not limited to:
(A) the retail price of the motor vehicle suggested
by the manufacturer or distributor, as applicable;
(B) the retail delivered price suggested by the manufacturer
or distributor, as applicable, for each accessory or item of optional
equipment, physically attached to the motor vehicle at the time of
its delivery to a dealer, which is not included within the price of
the motor vehicle as stated in subparagraph (A) of this paragraph;
(C) the amount charged, if any, to a dealer for the
transportation of the motor vehicle to the location at which it is
delivered to the dealer; and
(D) the total of the amounts specified pursuant to
subparagraphs (A), (B), and (C) of this paragraph.
(14) Online service--A network that connects computer
users.
(15) Rebate or cash back--A sum of money applied to
the purchase or lease of a motor vehicle or refunded after full payment
has been rendered for the benefit of the purchaser.
(16) Savings claim or discount--An offer to sell or
lease a motor vehicle at a reduced price, including, but not limited
to, a manufacturer's or distributor's customer rebate, a dealer discount,
or a limited rebate.
(17) Subsequent violation--Conduct that is the same
or substantially the same as conduct the department has previously
alleged in a notice of an opportunity to cure to be a violation of
an advertising provision.
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