SEC. 13. Section 11713.1 of the Vehicle Code is amended to read:
SEC. 14. Section 11713.1 is added to the Vehicle Code, to read:
11713.1. It is a violation of this code for the holder of a
dealer’s license issued under this article to do any of the
following:
(a) Advertise a specific vehicle for sale without identifying the
vehicle by its model, model-year, and either its license number or
that portion of the vehicle identification number that distinguishes
the vehicle from all other vehicles of the same make, model, and
model-year. Model-year is not required to be advertised for current
model-year vehicles. Year models are no longer current when ensuing
year models are available for purchase at retail in California. An
advertisement that offers for sale a class of new vehicles in a
dealer’s inventory, consisting of five or more vehicles, that are all
of the same make, model, and model-year is not required to include
in the advertisement the vehicle identification numbers or license
numbers of those vehicles.
(b) Advertise the total price of a vehicle without including all
costs to the purchaser at time of sale, except taxes, vehicle
registration fees, the California tire fee, as defined in Section
42885 of the Public Resources Code, emission testing fees not
42885 of the Public Resources Code, emission testing charges not
exceeding fifty dollars ($50), actual fees charged for certificates
pursuant to Section 44060 of the Health and Safety Code, finance
charges, and any dealer document preparation charge. The dealer
document preparation charge shall not exceed fifty-five dollars
($55).
charges, and any dealer document processing charge or charge to
electronically register or transfer the vehicle.
(c) (1) Exclude from an advertisement of a vehicle for sale that
there will be added to the advertised total price at the time of
sale, charges for sales tax, vehicle registration fees, the
California tire fee, the fee charged by the state for the issuance of
a certificate of compliance or noncompliance pursuant to a statute,
finance charges, and a dealer document preparation charge.
finance charges, a charge to electronically register or transfer the
vehicle, and a dealer document processing charge.
(2) The obligations imposed by paragraph (1) are satisfied by
adding to the advertisement a statement containing no abbreviations
and that is worded in substantially the following form: “Plus
government fees and taxes, any finance charges, any dealer document
preparation charge, and any emission testing charge.”
processing charge, any electronic filing charge, and any emission
testing charge.”
(3) For purposes of paragraph (1), “advertisement” means an
advertisement in a newspaper, magazine, or direct mail publication
that is two or more columns in width or one column in width and more
than seven inches in length, or on a Web page of a dealer’s Internet
Web site that displays the price of a vehicle offered for sale on the
Internet, as that term is defined in paragraph (6) of subdivision
(f) of Section 17538 of the Business and Professions Code.
(d) Represent the dealer document preparation charge or
certificate of compliance or noncompliance fee, as a governmental
fee.
(d) Represent the dealer document processing charge, electronic
registration or transfer charge, or emission testing charge, as a
governmental fee.
(e) Fail to sell a vehicle to a person at the advertised total
price, exclusive of taxes, vehicle registration fees, the California
tire fee, the fee charged by the state for the issuance of a
certificate of compliance or noncompliance pursuant to a statute,
finance charges, mobilehome escrow fees, the amount of a city,
county, or city and county imposed fee or tax for a mobilehome, and a
dealer document preparation charge, which charges shall not exceed
fifty-five dollars ($55) for the document preparation charge and not
to exceed fifty dollars ($50) for emission testing plus the actual
fees charged for certificates pursuant to Section 44060 of the Health
and Safety Code, while the vehicle remains unsold, unless the
advertisement states the advertised total price is good only for a
specified time and the time has elapsed. Advertised vehicles shall be
sold at or below the advertised total price, with statutorily
permitted exclusions, regardless of whether the purchaser has
knowledge of the advertised total price.
county, or city and county imposed fee or tax for a mobilehome, a
dealer document processing charge, an electronic registration or
transfer charge, and a charge for emission testing not to exceed
fifty dollars ($50) plus the actual fees charged for certificates
pursuant to Section 44060 of the Health and Safety Code, while the
vehicle remains unsold, unless the advertisement states the
advertised total price is good only for a specified time and the time
has elapsed. Advertised vehicles shall be sold at or below the
advertised total price, with statutorily permitted exclusions,
regardless of whether the purchaser has knowledge of the advertised
total price.
(f) (1) Advertise for sale, sell, or purchase for resale a new
vehicle of a line-make for which the dealer does not hold a
franchise.
(2) This subdivision does not apply to a transaction involving the
following:
(A) A mobilehome.
(B) A recreational vehicle as defined in Section 18010 of the
Health and Safety Code.
(C) A commercial coach, as defined in Section 18001.8 of the
Health and Safety Code.
(D) An off-highway motor vehicle subject to identification as
defined in Section 38012.
(E) A manufactured home.
(F) A new vehicle that will be substantially altered or modified
by a converter prior to resale.
(G) A commercial vehicle with a gross vehicle weight rating of
more than 10,000 pounds.
(H) A vehicle purchased for export and exported outside the
territorial limits of the United States without being registered with
the department.
(I) A vehicle acquired in the ordinary course of business as a new
vehicle by a dealer franchised to sell that vehicle, if all of the
following apply:
(i) The manufacturer or distributor of the vehicle files a
bankruptcy petition.
(ii) The franchise agreement of the dealer is terminated,
canceled, or rejected by the manufacturer or distributor as part of
the bankruptcy proceedings and the termination, cancellation, or
rejection is not a result of the revocation by the department of the
dealer’s license or the dealer’s conviction of a crime.
(iii) The vehicle is held in the inventory of the dealer on the
date the bankruptcy petition is filed.
(iv) The vehicle is sold by the dealer within six months of the
date the bankruptcy petition is filed.
(3) Subparagraph (I) of paragraph (2) does not entitle a dealer
whose franchise agreement has been terminated, canceled, or rejected
to continue to perform warranty service repairs or continue to be
eligible to offer or receive consumer or dealer incentives offered by
the manufacturer or distributor.
(g) Sell a park trailer, as specified in Section 18009.3 of the
Health and Safety Code, without disclosing in writing to the
purchaser that a park trailer is required to be moved by a
transporter or a licensed manufacturer or dealer under a permit
issued by the Department of Transportation or a local authority with
respect to highways under their respective jurisdictions.
(h) Advertise free merchandise, gifts, or services provided by a
dealer contingent on the purchase of a vehicle. “Free” includes
merchandise or services offered for sale at a price less than the
seller’s cost of the merchandise or services.
(i) (1) Advertise vehicles, and related goods or services, at a
(i) (1) Advertise vehicles, and related goods or services, at a
specified dealer price, with the intent not to supply reasonably
expectable demand, unless the advertisement discloses the number of
vehicles in stock at the advertised price. In addition, whether or
not there are sufficient vehicles in stock to supply a reasonably
expectable demand, when phrases such as “starting at,” “from,”
“beginning as low as,” or words of similar import are used in
reference to an advertised price, the advertisement shall disclose
the number of vehicles available at that advertised price.
(2) For purposes of this subdivision, in a newspaper advertisement
for a vehicle that is two model-years old or newer, the actual
phrase that states the number of vehicles in stock at the advertised
price shall be printed in a type size that is at least equal to
one-quarter of the type size, and in the same style and color of
type, used for the advertised price. However, in no case shall the
phrase be printed in less than 8-point type size, and the phrase
shall be disclosed immediately above, below, or beside the advertised
price without intervening words, pictures, marks, or symbols.
(3) The disclosure required by this subdivision is in addition to
any other disclosure required by this code or any regulation
regarding identifying vehicles advertised for sale.
(j) Use “rebate” or similar words, including, but not limited to,
“cash back,” in advertising the sale of a vehicle unless the rebate
is expressed in a specific dollar amount and is in fact a rebate
offered by the vehicle manufacturer or distributor directly to the
retail purchaser of the vehicle or to the assignee of the retail
purchaser.
(k) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services. For the purpose of this
subdivision, “cash price” has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
( l ) Advertise a guaranteed trade-in allowance.
(l) Advertise a guaranteed trade-in allowance.
(m) Misrepresent the authority of a salesperson, representative,
or agent to negotiate the final terms of a transaction.
(n) (1) Use “invoice,” “dealer’s invoice,” “wholesale price,” or
similar terms that refer to a dealer’s cost for a vehicle in an
advertisement for the sale of a vehicle or advertise that the selling
price of a vehicle is above, below, or at either of the following:
(A) The manufacturer’s or distributor’s invoice price to a dealer.

(B) A dealer’s cost.
(2) This subdivision does not apply to either of the following:
(A) A communication occurring during face-to-face negotiations for
the purchase of a specific vehicle if the prospective purchaser
initiates a discussion of the vehicle’s invoice price or the dealer’s
cost for that vehicle.
(B) A communication between a dealer and a prospective commercial
purchaser that is not disseminated to the general public. For
purposes of this subparagraph, a “commercial purchaser” means a
dealer, lessor, lessor-retailer, manufacturer, remanufacturer,
distributor, financial institution, governmental entity, or person
who purchases 10 or more vehicles during a year.
(o) Violate a law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 (commencing with Section 238) of Title 16 of
the Code of Federal Regulations, as those regulations read on January
1, 1988.
(p) Make an untrue or misleading statement indicating that a
vehicle is equipped with all the factory-installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is “fully factory equipped.”
(q) Affix on a new vehicle a supplemental price sticker containing
a price that represents the dealer’s asking price that exceeds the
manufacturer’s suggested retail price unless all of the following
occur:
(1) The supplemental sticker clearly and conspicuously discloses
in the largest print appearing on the sticker, other than the print
size used for the dealer’s name, that the supplemental sticker price
is the dealer’s asking price, or words of similar import, and that it
is not the manufacturer’s suggested retail price.
(2) The supplemental sticker clearly and conspicuously discloses
the manufacturer’s suggested retail price.
(3) The supplemental sticker lists each item that is not included
in the manufacturer’s suggested retail price, and discloses the
additional price of each item. If the supplemental sticker price is
greater than the sum of the manufacturer’s suggested retail price and
the price of the items added by the dealer, the supplemental sticker
price shall set forth that difference and describe it as “added
mark-up.”
(r) Advertise an underselling claim, including, but not limited
to, “we have the lowest prices” or “we will beat any dealer’s price,”
unless the dealer has conducted a recent survey showing that the
dealer sells its vehicles at lower prices than another licensee in
its trade area and maintains records to adequately substantiate the
claims. The substantiating records shall be made available to the
department upon request.
(s) (1) Advertise an incentive offered by the manufacturer or
distributor if the dealer is required to contribute to the cost of
the incentive as a condition of participating in the incentive
program, unless the dealer discloses in a clear and conspicuous
manner that dealer participation may affect consumer cost.
(2) For purposes of this subdivision, “incentive” means anything
of value offered to induce people to purchase a vehicle, including,
but not limited to, discounts, savings claims, rebates, below-market
finance rates, and free merchandise or services.
(t) Display or offer for sale a used vehicle unless there is
affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
(u) Fail to disclose in writing to the franchisor of a new motor
vehicle dealer the name of the purchaser, date of sale, and the
vehicle identification number of each new motor vehicle sold of the
line-make of that franchisor, or intentionally submit to that
franchisor a false name for the purchaser or false date for the date
of sale.
(v) Enter into a contract for the retail sale of a motor vehicle
unless the contract clearly and conspicuously discloses whether the
vehicle is being sold as a new vehicle or a used vehicle, as defined
in this code.
(w) Use a simulated check, as defined in subdivision (a) of
Section 22433 of the Business and Professions Code, in an
advertisement for the sale or lease of a vehicle.
(x) Fail to disclose, in a clear and conspicuous manner in at
least 10-point boldface type on the face of a contract for the retail
sale of a new motor vehicle that this transaction is, or is not,
subject to a fee received by an autobroker from the selling new motor
vehicle dealer, and the name of the autobroker, if applicable.
(y) As used in this section, “make” and “model” have the same
(y) Sell or lease a new motor vehicle after October 1, 2012,
unless the dealer has a contractual agreement with the department to
be a private industry partner pursuant to Section 1685. This
subdivision does not apply to the sale or lease of a motorcycle or
off-highway motor vehicle subject to identification under Section
38010 or a recreational vehicle as defined in Section 18010 of the
Health and Safety Code.
(z) As used in this section, “make” and “model” have the same
meaning as is provided in Section 565.3 of Title 49 of the Code of
Federal Regulations.
(z) This section shall become inoperative on July 1, 2012, and, as
of January 1, 2013, is repealed, unless a later enacted statute that
is enacted before January 1, 2013, deletes or extends the dates on
which it becomes inoperative and is repealed.
(aa) This section shall become operative on July 1, 2012.