Legal Question in Consumer Law in Virginia

Deceptive auto internet pricing

While shopping for a used vehicle on the web, I found a semi-local dealer with a good (advertised)price on a 2002 Explorer ($13,900). I called and verified that it was in stock and proceeded to drive 55 miles to the location. The salesman I spoke to on the phone was not available. When I saw the advertised Explorer on the lot I was told by a salesperson that it was a different Explorer (price was over $20,000) and that the advertised Explorer had been sold. (and yes someone witnessed this exchange) However, the stock # on the $20,000 vehicle matched the advertised stock number on the $13,900. The vehicle on the lot matched the advertisement perfectly. Does the dealer have an obligation to make good on their advertised price as it is displayed on a web site that they themselves administer?


Asked on 8/25/03, 6:23 pm

2 Answers from Attorneys

Daniel Hawes Hawes & Associates

Re: Deceptive auto internet pricing

yes. A failure to sell on the terms advertised is a specific violation of the Virginia Consumer Protection Act (excerpt below):

Virginia Code � 59.1-200 Prohibited practices. �

A. The following fraudulent acts or practices committed by a supplier in connection with a consumer transaction are hereby declared unlawful:

... 8. Advertising goods or services with intent not to sell them as advertised, or with intent not to sell at the price or upon the terms advertised.

In any action brought under this subdivision, the refusal by any person, or any employee, agent, or servant thereof, to sell any goods or services advertised or offered for sale at the price or upon the terms advertised or offered, shall be prima facie evidence of a violation of this subdivision. This paragraph shall not apply when it is clearly and conspicuously stated in the advertisement or offer by which such goods or services are advertised or offered for sale, that the supplier or offeror has a limited quantity or amount of such goods or services for sale, and the supplier or offeror at the time of such advertisement or offer did in fact have or reasonably expected to have at least such quantity or amount for sale;

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One thing to be aware of is that if you didn't "suffer a loss", then you don't have "standing to sue" under the Virginia Consumer Protection Act. The statute does not require a financial or monetary loss, and I think that your having driven a long way, using up your time and gasoline, is sufficient.

If you end up buying a comparable vehicle, your damages amount to the difference between what you had to pay and the advertised price. At a minimum (i.e, just for filing suit) you get $500 plus attorneys' fees.

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Answered on 8/25/03, 6:51 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Deceptive auto internet pricing

Offers to sell something at a given price made by retailers (or others) in the various media, including the Internet, are generally recognized in the law as little more than opportunities to chaffer. That means to haggle or bargain---and nothing more.

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Answered on 8/25/03, 7:19 pm


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