When shopping for a car, you might see advertisements promoting a huge “auction event.” Dealerships might advertise “auction specials” to make you think you are getting a steep discount. You might assume you are buying a vehicle at its true auction value. However, Utah law strictly regulates the use of these specific words. Utah Administrative Code Rule R877-23V prevents dealerships from using fake auctions to trick buyers.
The Rule on Accuracy and Facts
Utah law requires absolute honesty in all motor vehicle advertising. A dealership cannot invent a fake event just to get you on the lot. Rule R877-23V dictates that any advertised statements must be truthful.
The law states, “Any advertised statements and offers about a motor vehicle… shall be clearly set forth and based upon facts”. If a dealership is not holding a genuine auction, they cannot use the word. Advertising a regular retail sale as an “auction” is a false statement. This deceptive tactic misleads buyers about the nature of the sale and the pricing.
The Ban on Fake Wholesale Pricing
Dealers can use the word “auction” to imply you are paying wholesale prices. They want you to believe you are getting an exclusive dealer-only discount. But Utah law explicitly stops dealers from making these misleading claims.
Under Rule R877-23V, a dealership cannot advertise wholesale prices to the general public. The law states, “The word ‘wholesale’ may not be used in retail motor vehicle advertising”. If an “auction special” is just a standard retail sale, the advertisement violates the law. A dealership cannot disguise a regular markup as an exclusive wholesale auction deal.
Why These Rules Protect You
These regulations exist to ensure a fair and honest market for buyers. If a dealer claims a car is an “auction special,” they create a false sense of urgency. You might rush to buy the car, thinking the deal will vanish quickly. Dealers must compete based on actual retail pricing and honest vehicle descriptions. You have the right to evaluate a purchase without the stress of a fake auction environment.
Protect Your Rights with Head Law
Buying a car should always be an honest and transparent financial process. You do not have to accept illegal marketing tactics from car dealerships. Save a screenshot or physical copy of the car advertisement. Keep careful notes of your conversation with the dealership sales staff.
If a dealer refuses to follow the law, you can take action. At Head Law, we focus on protecting consumers from deceptive business practices. If you believe a dealer used illegal auction advertising, contact Head Law today. We will review the facts of your specific case. We can help hold the dealership accountable and protect your rights as a Utah consumer.