NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) and the Tennessee Motor Vehicle Commission are alerting auto buyers to the increased presence of illegal and unlawful advertisements being sent from licensed Tennessee motor vehicle dealerships.
During the past two years, a growing number of auto consumers have complained about the misleading auto advertisements mailed to them by Tennessee motor vehicle dealers and salespeople that resemble scratch-off lottery tickets, images from the “Monopoly” board game, or pull-tab games. These mailers include codes or symbols that must match for a consumer to win a prize. Unfortunately, most of these promotions and games promise more than they deliver and have been found to violate the Commission’s advertising rules and the Consumer Protection Act.
“While most licensed motor-vehicle dealers and salespeople are hard-working and honest, some inscrutable individuals are breaking Tennessee’s motor vehicle advertising laws by using flashy, illegal promotions in order to give themselves an unfair advantage by luring customers to their dealerships,” said Motor Vehicle Commission Executive Director Denise Lawrence. “I urge consumers to be vigilant and contact our team if they feel they’ve been mistreated by a licensed motor vehicle dealer or salesperson.”
The Tennessee Motor Vehicle Commission is part of TDCI’s Division of Regulatory Boards, which licenses and regulates more than 357,000 Tennesseans across 26 regulatory programs and oversees professionals and businesses statewide.
Since October 2024, the Commission has assessed $35,000 in seven civil penalties, all related to these types of violations by dealers across Tennessee. Even if a Tennessee dealer uses an advertising agency to create ads in any medium, the Tennessee dealer remains responsible for ensuring each ad complies with the laws and rules governing advertising. All Tennessee-licensed dealers must comply with relevant state and federal laws. To create a level playing field for all licensees, motor vehicle dealerships are limited in the types, images, and language they may use in advertisements.
To assist consumers, the Commission is sharing the following tips to remember:
All advertising in any form of media, including any written, graphic, or pictorial messaging, including signs, posters, or online services, must follow all state or federal laws and regulations.
False, misleading, or deceptive advertising of motor vehicles or recreational vehicles is prohibited.
Unsubstantiated selling claims and misleading statements or inferences, including the use of superlatives, are strictly prohibited. Examples include: “Write your own deal,” “Name your own price,” “We are number 1 in car sales,” “Lowest price in the south.”
Any dealership using salespeople on a permanent or limited basis must ensure that each salesperson holds a valid salesperson license issued by the Tennessee Motor Vehicle Commission. To verify the license of a motor vehicle salesperson in Tennessee, visit verify.tn.gov
Consumers who believe they have been the victim of a false advertisement or witnessed other violations are urged to contact the Tennessee Motor Vehicle Commission at (615) 741-2711 or file a complaint online tn.gov/commerce
