Proposed Committee Substitute by the Committee on Commerce

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A bill to be entitled

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An act relating to motor vehicle dealers; amending s.

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501.975, F.S.; defining the term "advertised price" for

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purposes of motor vehicle sales; amending s. 501.976,

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F.S.; requiring that the advertised price include all

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costs, fees, or charges that the customer must pay, with

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certain exclusions; requiring a conspicuous label

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containing a disclosure regarding the predelivery service

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fee; providing an exception; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 501.975, Florida Statutes, is amended to

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read:

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     501.975  Definitions.--As used in s. 501.976, the following

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terms shall have the following meanings:

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     (1)  "Customer" includes a customer's designated agent.

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     (2)  "Dealer" means a motor vehicle dealer as defined in s.

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320.27, but does not include a motor vehicle auction as defined

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in s. 320.27(1)(c)4.

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     (3)  "Replacement item" means a tire, bumper, bumper fascia,

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glass, in-dashboard equipment, seat or upholstery cover or trim,

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exterior illumination unit, grill, sunroof, external mirror and

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external body cladding. The replacement of up to three of these

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items does not constitute repair of damage if each item is

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replaced because of a product defect or damaged due to vandalism

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while the new motor vehicle is under the control of the dealer

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and the items are replaced with original manufacturer equipment,

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unless an item is replaced due to a crash, collision, or

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accident.

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     (4)  "Threshold amount" means 3 percent of the

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manufacturer's suggested retail price of a motor vehicle or $650,

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whichever is less.

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     (5)  "Vehicle" means any automobile, truck, bus,

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recreational vehicle, or motorcycle required to be licensed under

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chapter 320 for operation over the roads of Florida, but does not

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include trailers, mobile homes, travel trailers, or trailer

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coaches without independent motive power.

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     (6) "Advertised price" means the price as expressed in any

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statements that are transmitted orally, through written material,

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through electronic means, or any illustration that is

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disseminated to the public or affixed to a motor vehicle, and

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which is used in selling a motor vehicle or otherwise used to

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induce a person to enter into any obligation related to the motor

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vehicle.

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     Section 2.  Section 501.976, Florida Statutes, is amended to

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read:

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     501.976  Actionable, unfair, or deceptive acts or

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practices.--It is an unfair or deceptive act or practice,

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actionable under the Florida Deceptive and Unfair Trade Practices

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Act, for a dealer to:

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     (1)  Represent directly or indirectly that a motor vehicle

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is a factory executive vehicle or executive vehicle unless such

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vehicle was purchased directly from the manufacturer or a

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subsidiary of the manufacturer and the vehicle was used

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exclusively by the manufacturer, its subsidiary, or a dealer for

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the commercial or personal use of the manufacturer's,

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subsidiary's, or dealer's employees.

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     (2)  Represent directly or indirectly that a vehicle is a

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demonstrator unless the vehicle complies with the definition of a

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demonstrator in s. 320.60(3).

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     (3)  Represent the previous usage or status of a vehicle to

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be something that it was not, or make usage or status

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representations unless the dealer has correct information

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regarding the history of the vehicle to support the

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representations.

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     (4)  Represent the quality of care, regularity of servicing,

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or general condition of a vehicle unless known by the dealer to

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be true and supportable by material fact.

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     (5)  Represent orally or in writing that a particular

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vehicle has not sustained structural or substantial skin damage

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unless the statement is made in good faith and the vehicle has

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been inspected by the dealer or his or her agent to determine

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whether the vehicle has incurred such damage.

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     (6)  Sell a vehicle without fully and conspicuously

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disclosing in writing at or before the consummation of sale any

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warranty or guarantee terms, obligations, or conditions that the

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dealer or manufacturer has given to the buyer. If the warranty

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obligations are to be shared by the dealer and the buyer, the

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method of determining the percentage of repair costs to be

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assumed by each party must be disclosed. If the dealer intends to

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disclaim or limit any expressed or implied warranty, the

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disclaimer must be in writing in a conspicuous manner and in lay

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terms in accordance with chapter 672 and the Magnuson-Moss

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Warranty--Federal Trade Commission Improvement Act.

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     (7)  Provide an express or implied warranty and fail to

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honor such warranty unless properly disclaimed pursuant to

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subsection (6).

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     (8)  Misrepresent warranty coverage, application period, or

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any warranty transfer cost or conditions to a customer.

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     (9)  Obtain signatures from a customer on contracts that are

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not fully completed at the time the customer signs or which do

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not reflect accurately the negotiations and agreement between the

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customer and the dealer.

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     (10)  Require or accept a deposit from a prospective

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customer prior to entering into a binding contract for the

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purchase and sale of a vehicle unless the customer is given a

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written receipt that states how long the dealer will hold the

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vehicle from other sale and the amount of the deposit, and

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clearly and conspicuously states whether and upon what conditions

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the deposit is refundable or nonrefundable.

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     (11)  Add to the cash price of a vehicle as defined in s.

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520.02(2) any fee or charge other than those provided in that

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section and in rule 3D-50.001, Florida Administrative Code. All

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fees or charges permitted to be added to the cash price by rule

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3D-50.001, Florida Administrative Code, must be fully disclosed

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to customers in all binding contracts concerning the vehicle's

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selling price.

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     (12)  Alter or change the odometer mileage of a vehicle.

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     (13)  Sell a vehicle without disclosing to the customer the

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actual year and model of the vehicle.

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     (14)  File a lien against a new vehicle purchased with a

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check unless the dealer fully discloses to the purchaser that a

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lien will be filed if purchase is made by check and fully

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discloses to the buyer the procedures and cost to the buyer for

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gaining title to the vehicle after the lien is filed.

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     (15)  Increase the price of the vehicle after having

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accepted an order of purchase or a contract from a buyer,

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notwithstanding subsequent receipt of an official price change

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notification. The price of a vehicle may be increased after a

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dealer accepts an order of purchase or a contract from a buyer

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if:

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     (a)  A trade-in vehicle is reappraised because it

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subsequently is damaged, or parts or accessories are removed;

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     (b)  The price increase is caused by the addition of new

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equipment, as required by state or federal law;

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     (c)  The price increase is caused by the revaluation of the

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United States dollar by the Federal Government, in the case of a

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foreign-made vehicle;

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     (d)  The price increase is caused by state or federal tax

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rate changes; or

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     (e)  Price protection is not provided by the manufacturer,

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importer, or distributor.

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     (16)  Advertise the price of a vehicle unless the vehicle is

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identified by year, make, model, and a commonly accepted trade,

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brand, or style name.

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     (a) The advertised price must include all costs, fees, or

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charges that the customer must pay, excluding including freight

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or destination charge, dealer preparation charge, and charges for

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undercoating or rustproofing. state and local taxes, tag fees

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tags, registration fees, and title fees, unless otherwise

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required by local law or standard, need not be disclosed in the

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advertisement.

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     (b) When two or more dealers advertise jointly, with or

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without participation of the franchisor, the advertised price

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must include the highest price of the vehicles being offered,

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consistent with paragraph (a), or specify the price for each

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vehicle, respectively need not include fees and charges that are

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variable among the individual dealers cooperating in the

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advertisement, but the nature of all charges that are not

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included in the advertised price must be disclosed in the

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advertisement.

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     (17)  Charge a customer for any predelivery service required

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by the manufacturer, distributor, or importer for which the

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dealer is reimbursed by the manufacturer, distributor, or

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importer.

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     (18)  Charge a customer for any predelivery service without

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having printed on all documents that include a line item for

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predelivery service the following disclosure: "This charge

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represents costs and profit to the dealer for items such as

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inspecting, cleaning, and adjusting vehicles, and preparing

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documents related to the sale."

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     (19)  Fail to disclose damage to a new motor vehicle, as

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defined in s. 319.001(8), of which the dealer had actual

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knowledge, if the dealer's actual cost of repairs exceeds the

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threshold amount, excluding replacement items.

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     (20) Fail to attach a conspicuous label to the window of a

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motor vehicle specifying any charge for predelivery services if

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the motor vehicle under consideration by a prospective purchaser

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is available for physical inspection by the purchaser. The label

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must include the following disclosure: "This charge represents

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costs and profit to the dealer for items such as inspecting,

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cleaning, and adjusting vehicles, and preparing documents related

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to the sale." This requirement does not apply to the sale of

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motorcycles.

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In any civil litigation resulting from a violation of this

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section, when evaluating the reasonableness of an award of

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attorney's fees to a private person, the trial court shall

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consider the amount of actual damages in relation to the time

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spent.

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     Section 3.  This act shall take effect July 1, 2008.