Monday, October 22, 2018

ATTORNEY GENERAL PAM BONDI: PLEASE ENFORCE FLORIDA’S LAWS REGULATING ADVERTISED CAR PRICE


Attorney General Bondi, as the top-ranking law enforcement officer of Florida, I ask you to investigate a sampling of new vehicle advertisements by Florida car dealers. These are readily available to you in Tallahassee, online from your home or office PC.

If your investigator indicates an interest in buying one of these advertised cars from that car dealer, they will discover that they cannot buy it at the advertised price “including all fees or charges that the customer must pay” according to Florida statute 501.976*.

You probably know me. I’ve been a car dealer in Florida for 50 years. In recent years I’ve evolved into a consumer advocate helping car buyers from being taken advantage of by car dealers. I’ve been doing a weekly radio show on this subject for 14 years. Each week we mystery shop a South Florida car dealer. http://www.mysteryshoppingreports.com is the link to my archives of these reports. Our typical report involves responding to an online, TV, direct mail, or newspaper advertisement. We send a mystery shopper in who pretends to want to buy the advertised vehicle at the advertised price. In virtually all mystery shops (over 500), there are additional charges including “non-governmental” fees added to the advertised price.

The last time I raised this issue with your AG predecessor, General McCollum, I was told that the AG’s office didn’t have a significant number of complaints from Florida car buyers on this issue. I sincerely believe the reason for this is that Florida car dealer have been ignoring this law for so long, the law has never been enforced, and that car buyers have become “used to being deceived”. They either don’t know about the law or feel that filing a complaint is not worth the effort.

You’ve done a great job controlling “Pill Mills”, pharmaceutical companies, and other threats to Florida consumers. Floridians spend more money on automobiles than anything except housing, and they need your protection from being over charged millions of dollars annually by hidden charges violating Florida Statute 501.976.

*The 2018 Florida Statutes


TITLE XXXIII

REGULATION OF TRADE, COMMERCE, INVESTMENTS AND SOLICITATIONS

CHAPTER 501 CONSUMER PROTECTION

501.976 Actionable, unfair, or deceptive acts or practices. —It is an unfair or deceptive act or practice, actionable under the Florida Deceptive and Unfair Trade Practices Act, for a dealer to: 

(16) Advertise the price of a vehicle unless the vehicle is identified by year, make, model, and a commonly accepted trade, brand, or style name. The advertised price must include all fees or charges that the customer must pay, including freight or destination charge, dealer preparation charge, and charges for undercoating or rustproofing. State and local taxes, tags, registration fees, and title fees, unless otherwise required by local law or standard, need not be disclosed in the advertisement. When two or more dealers advertise jointly, with or without participation of the franchisor, the advertised price need not include fees and charges that are variable among the individual dealers cooperating in the advertisement, but the nature of all charges that are not included in the advertised price must be disclosed in the advertisement.

(17) Charge a customer for any predelivery service required by the manufacturer, distributor, or importer for which the dealer is reimbursed by the manufacturer, distributor, or importer.

(18) Charge a customer for any predelivery service without having printed on all documents that include a line item for predelivery service the following disclosure: “This charge represents costs and profit to the dealer for items such as inspecting, cleaning, and adjusting vehicles, and preparing documents related to the sale.”

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