As stated earlier in the course, the Ohio Attorney General’s office plays a leading role in law enforcement in the state and has the very important responsibility of protecting consumers from fraudulent business practices. Ohio has several Consumer Protection Laws, with the cornerstone being the Consumer Sales Practices Act (CSPA). This law protects individual consumers from unfair, deceptive, and unconscionable sales practices in connection with consumer transactions. The act also includes motor vehicle transactions conducted by licensed motor vehicle dealers.

If you'd like to download the entire Consumer Sales Practices Act Manual, you can do so by visiting the ohiodealer.com website and scrolling down to the Ohio Dealer License Forms link.

Now, let’s go over some important components of Ohio’s Consumer Protection laws, especially those directly affecting Ohio dealerships. Please note that additional laws may apply.

Key Consumer Protection Laws Affecting Ohio Dealerships

• Credit Card Reporting Act: Prohibits sellers from disclosing consumers' personal financial information, including social security numbers and credit card details.
• Credit Card Truncation Act: Prevents sellers from printing credit card expiration dates or more than five digits of a credit card number on receipts.
• Motor Vehicle Collision Repair Operators Act: Requires registration and insurance for individuals repairing vehicles damaged in collisions.
• Odometer Rollback and Disclosure Act: Makes it illegal to alter or conceal a vehicle’s mileage and establishes a $1000 penalty for tampering.
• Security Breach Notification Act: Mandates sellers to notify consumers if a security breach exposes their personal information to identity theft or fraud.
• Certificate of Motor Vehicle Title Act: Provides consumers the right to cancel a vehicle purchase if the dealer fails to deliver the title within 40 days.
• Consumer Sales Practices Act (CSPA): Protects consumers from deceptive advertising and sales practices, including misrepresentation of products, prices, or transaction terms.
• Lemon Law: Requires manufacturers to notify buyers of their right to compensation if a vehicle is defective and mandates repair or replacement within a reasonable time frame.
• Telemarketing Act: Enables the Ohio Attorney General to enforce federal telemarketing laws.

Documentary Service Fees

Ohio law allows dealerships to charge a documentary service fee for vehicle transactions. This fee is tied to the costs of preparing documents related to the sale, whether retail, wholesale, or lease. However, certain rules must be followed:

• The documentary service fee must be specified in writing.
• The fee can either be the maximum set by the Bureau of Motor Vehicles (BMV), based on the Consumer Price Index, or 10% of the vehicle’s price — whichever is less.
• The fee must be included in the total taxable amount of the vehicle sale.

The maximum documentary fee is adjusted annually by the BMV, typically on the last day of September, and is published on their website.

It’s important to note that once you decide to charge a documentary fee, you may never waive it. If a customer refuses to pay the fee, you can lower the vehicle price but never waive the fee itself.

Advertising Regulations in Ohio

Advertising is a critical component of running a dealership, but it must adhere to strict guidelines to avoid deceptive practices. Below are common deceptive advertising practices:

• Inaccurate photographs of vehicles.
• Unexplained abbreviations, like “WAC” instead of “With Approved Credit”.
• Misleading terms such as “specially selected” if consumers were not targeted by the ad.
• Use of asterisks and disclaimers that confuse or contradict the ad message.
• Falsely implying that a dealer offers lower prices due to size or sales volume.
• Misleading “liquidation sale” or “close out sale” promotions.
• Falsely advertising a vehicle and then failing to make it available for purchase.
• Misleading statements about the “lowest prices” that cannot be substantiated.
• Failure to disclose that a “factory invoice” may not reflect the dealer’s actual cost.

Additionally, if you are advertising used vehicles, make sure to clearly disclose that they are “used,” “previously owned,” or “pre-owned.”

Export Laws for Dealerships

Ohio dealers can legally export vehicles to other countries to meet demand. However, Ohio requires you to submit the Ohio Vehicle Export Application when exporting a vehicle. Failing to do so could result in a $2,500 fine.

• Ohio has several Consumer Protection Laws.
• Documentary service fees can be charged for preparing documents related to vehicle sales.
• Ohio has strict advertising guidelines for dealers.
• Deceptive advertising and bait-and-switch tactics are never allowed.
• The Attorney General investigates deceptive advertising practices.
• Advertising rustproofing is prohibited.
• Dealers cannot drill holes in vehicles for name placards without written consent.
• Exported vehicles must be reported to the BMV.