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RULE §215.244Definitions

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 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 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 (14) 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 sub-paragraph (D)of paragraph (14) 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) License holder--Any person required to obtain a license from the department.

  (12) 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.

  (13) Manufacturer's Suggested Retail Price (MSRP)--means the total price shown on the Monroney Label as specified by sub-paragraph (D) of paragraph (14) of this section.

  (14) 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.

  (15) Online service--A network that connects computer users.

  (16) 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.

  (17) 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.

  (18) Subsequent violation--Conduct that is the same or substantially the same as conduct the department has previously alleged in an earlier communication 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; amended to be effective February 13, 2017, 42 TexReg 571

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