A local car dealer has been notified by the Texas Department of Transportation (TxDOT) to stop its “Buy One, Get One” advertising. The warning came after the Better Business Bureau serving Dallas and Northeast Texas (BBB) referred concerns about the advertising claim to TxDOT.
Trophy Nissan, Inc., 5031 N. Galloway Ave., Mesquite, advertised repeatedly “Buy One, Get One for a Buck” and “Buy One, Get One Free”.
But would the second car truly cost only “a Buck” or be “free”? When purchasing something like a car where the price is negotiated, how can a buyer tell whether the negotiated price includes the cost of the item offered “free”?
The answer is that the customer can’t tell. That’s why the BBB Code of Advertising says:
In a negotiated sale no “free” offer of another product or service should be made where the product or service to be purchased usually is sold at a price arrived at through bargaining, rather than a regular price.
The BBB’s Advertising Review program identifies ads that do not meet the BBB Code of Advertising and asks advertisers to voluntarily substantiate, modify, or discontinue the ads. The BBB first brought its concerns about Trophy Nissan’s advertising to the dealer’s attention, and when the advertising claims continued, the BBB referred information about the ads to the Texas Department of Transportation.
The Texas Administrative Code states:
No merchandise or enticement may be described as "free" if the vehicle can be purchased or leased for a lesser price without the merchandise or enticement or if the price of the vehicle has been increased to cover the cost or any part of the cost of the merchandise or enticement. The advertisement shall clearly and conspicuously disclose the conditions under which the "free" offer may be obtained.
In November, 2006, Trophy Nissan advertised “Buy One Vehicle, Get One for a Buck”. The BBB asked the company to substantiate that claim. The business temporarily discontinued the advertising campaign in early 2007, and the BBB asked Trophy Nissan to supply substantiation before using the claim in the future.
In April, 2007, without providing any substantiation to the BBB, the business continued the “Buy One, Get One for a Buck” advertising.
In May, 2007, Trophy Nissan advised the BBB that it would permanently discontinue the “Buy One, Get One for a Buck” advertising.
In January, 2008, the business began a “Buy One Get One Free” campaign, and failed to respond to the BBB’s request to modify that advertising.
In early 2009, Trophy Nissan ran the ‘Buy One, Get One’ campaign again. The BBB immediately alerted the Texas Department of Transportation.
In April, 2009, the Texas Department of Transportation informed the BBB that, after an investigation, a warning letter was sent to Trophy Nissan. The warning letter notified the dealer of violation of applicable statutes, and warned that another violation of the statute within one year would result in formal disciplinary action.
Due in part to Trophy Nissan’s failure to cooperate with the BBB’s Advertising Review program, the business has a BBB rating of “F”. Other reasons for the rating include:
• 52 complaints filed against business
• Failure to respond to 2 complaints filed against business
For more information on the BBB Dallas local Advertising Review program, see http://www.dallas.bbb.org/dallasadreview/
To see the BBB Code of Advertising, visit http://www.dallas.bbb.org/bbb-accreditation-advertising-code/
To check on a business or to file a complaint, start at www.bbb.org.