Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Bureau of Construction Codes › Manufactured Housing › Part 4 - RETAILER BUSINESS PRACTICES › Section R. 125.1401 - Advertising; prohibited activities

Current through Vol. 24-12, July 15, 2024
Rule 401. A retailer, in connection with the sale of homes,
					 equipment, or accessories, shall not, directly or indirectly, engage in any of
					 the following activities:
(a)
				  Advertise a home for sale if the name of the retailer does not appear in the
				  advertisement. A home committed by a home owner to a retailer for sale may be
				  advertised if the offer visibly states that the home is "offered on
				  consignment."
(b) Advertise a home
				  and falsely offer any year of manufacture, make, type, model, serial number,
				  fixed location, price, equipment, or terms or make a claim or condition to the
				  sale of a home that is not truthful.
(c) Advertise the phrase "close out," "final
				  clearance," or "going out of business" or similar phrases in connection with
				  home sales unless the phrase is true. A retailer who is going out of business
				  shall comply with the provisions of 1961 PA 39, MCL 442.211 which includes
				  regulation of the sales activities of businesses that are going out of
				  business.
(d) Advertise the term
				  "authorized retailer" if the retailer is not a manufacturer's authorized
				  retailer or advertise as a franchised retailer if the retailer is not a
				  registered franchised retailer under 1974 PA 269, MCL 445.1501.
(e) Advertise a home by making inaccurate,
				  misleading, or false comparisons with competitors' services, prices, products,
				  quality, or business methods.
(f)
				  Use a picture or photograph of a home in advertising if the picture or
				  photograph does not represent a home of the same year of manufacture, make, and
				  model and does not contain all the standard equipment of the model that is
				  actually being offered for sale at the price quoted in the
				  advertisement.
(g) Advertise a home
				  for sale in a manner that conveys or creates an erroneous impression as to
				  which home is being offered at the advertised price.
(h) Advertise the statement "write your own
				  deal" or "name your own price" or similar statements, unless the statements are
				  true and a buyer can, in fact, negotiate his or her own price.
(i) Advertise the phrase "at cost," "below
				  cost," "below wholesale," "below invoice," "above cost," "above wholesale," or
				  "above invoice" or similar phrases, unless the phrases are true. As used in
				  this subsection, "cost" means the actual price paid by a retailer to a
				  manufacturer for a specific home as that price appears on the retailer invoice
				  received from the manufacturer.
(j)
				  Advertise a specified trade-in amount or range of amounts for a pre-owned home
				  without offering the advertised trade-in amount or range of amounts regardless
				  of the condition of the pre-owned home when presented to the retailer for
				  trade-in by a prospective customer, unless the statement "subject to condition
				  appraisal" is contained in the advertisement.
(k) Advertise that "no retailer has lower
				  prices," "the retailer is never undersold," or statements of similar meaning,
				  unless the statements are true.
(l)
				  Advertise in a manner that is false or misleading as to what a new home
				  guarantee, warranty, or protection includes.
(m) Advertise the phrase "manufacturer's
				  warranty," unless referring to a new home covered by a bona fide written
				  manufacturer's warranty.
(n)
				  Advertise equipment, accessories, or other merchandise as "free" if the cost,
				  or any part of the cost, is included in the quoted price of the home.
(o) Advertise the phrase "no credit rejected"
				  or "we finance everyone" or similar phrases, unless the phrases are
				  true.
(p) Advertise the offering of
				  a rebate or referral bonus unless true.
(q) Advertise a home as new, unless it has
				  never been occupied,
(r)
				  Advertise, or infer by advertising, that a home is "repossessed," unless it is
				  true.
(s) Advertise in any manner
				  which infers that a purchaser will be receiving benefits of an existing loan on
				  a home if the benefits do not exist.
(t) Advertise pre-owned homes as carrying an
				  unused portion of the original manufacturer's warranty, unless this is
				  true.
(u) Advertise the terms of
				  financing a home, unless the advertisement is in compliance with all of the
				  requirements of the federal truth in lending act, 15 U.S.C. §601 et seq.,
				  and the accompanying regulation Z, 12 C.F.R.part 226 et seq.
(v) Advertise under any other name than that
				  which appears on the retailer license.
(w) Advertise for the buying of a home
				  without the telephone number and the name of the retailer.