New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 2 - CONSUMER PROTECTION › Part 4 - REQUIREMENTS FOR THE ADVERTISING AND SALE OF MOTOR VEHICLES › Section 12.2.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
A. The purpose of
				these regulations is to accomplish two principal objectives. The first is to
				deter unfair and deceptive practices that result in economic harm to consumers.
				The second is to provide clear legal standards for motor vehicle advertising to
				facilitate dealer compliance and fair competition and to make evaluation of
				particular practices easier.
B. The
				attorney general's office has long been concerned about unfair and deceptive
				practices in connection with the advertising and sale of motor vehicles. The
				attorney general's consumer protection division has received numerous written
				consumer complaints and telephone calls alleging such practices. Indeed, the
				division receives such complaints virtually every day. The consumer protection
				division has also received a substantial number of telephonic and written
				complaints from motor vehicle dealers concerning other dealers' use of
				deceptive advertising as an unfair method of competition.
C. The complaints that have come to the
				attention of the attorney general's office have involved a large number of
				specific unfair or deceptive practices. These practices can be grouped into a
				number of more general categories. These include, but are not limited to:
				advertising vehicles for sale at prices lower than the actual prices at which
				the dealers will sell the vehicles; advertising fictitious discounts or
				trade-in allowances; failing to make required disclosure concerning credit
				terms; misrepresenting or failing to disclose material information concerning
				the age, condition and/or prior usage of motor vehicles. It is precisely such
				concerns that these regulations address.
D. The experience of the attorney general's
				office also indicates that the advertising and sale of motor vehicles is a
				particularly appropriate area for the promulgation of regulations. The sheer
				number of complaints, the number of dealers about whom consumers have
				complained and the fact that a significant number of complaints have been
				received from dealers concerning the use of unfair methods of competition in
				the industry all lead to the conclusion that regulations are necessary to
				ensure that advertising and sales practices are not unfair or deceptive, that
				such practices conform to legitimate consumer expectations and that all dealers
				are placed on an equal competitive footing. The attorney general has therefore
				concluded that regulation of the advertising and sale of motor vehicles is in
				the best interest of the health, safety and general welfare of the citizens of
				New Mexico.
E. These regulations
				provide a basis for evaluating motor vehicle advertising. They reflect
				provisions of New Mexico law, but do not necessarily cover every possible
				deceptive advertising practice. Therefore, it is not intended that literal
				compliance with these regulations be an absolute protection against liability
				for deceptive advertising. Dealers must review their advertising in light of
				the purpose of the regulations.
F.
				Before promulgating these regulations, notice of the proposed action was
				published pursuant to AG 92-3-1.3(A) [now 12.2.1.9 NMAC], and a public hearing
				was held on July 9, 1992 in Santa Fe. All comments received during the hearings
				were considered in the revision of the regulations finally promulgated.
				Consumers had already effectively spoken to this office and expressed their
				concerns through their written complaints and telephone calls. Representatives
				of the motor vehicle industry and the advertising industry testified at the
				hearings. This office also solicited written comments on the regulations. The
				comments received reflect the views of the New Mexico automotive dealers
				association representing the interests of new vehicle dealers and the
				independent automobile dealers association representing the interests of used
				vehicle dealers. All comments received were considered.