Dealer Must Identify as Dealer
on Craigslist Ads
A used Car Dealer or Auto Recycler in the state of
Iowa must identify themselves as dealers when
offering goods for sale such as cars or used auto
parts.
Even in online advertising medium such as Craigslist
the identification is necessary. This advertising issue
is covered by the Consumer Fraud Act, Iowa Code
Section 714.16, and Iowa Consumer Credit Code,
Iowa Code Chapter 537. This applies to all represen-
tations for advertisements for products or services.
Consult your used car dealer education manual,
Chapter 11, for more information. Bill Brauch of the
Consumer Fraud Protection Division published a
memorandum of interpretation addressing information
requests regarding the laws and regulations that ap-
ply to motor vehicle advertising to Iowans.
The Director of the Consumer Protection Division
wrote that the information applies to all motor vehicle
advertising to Iowans, regardless of the State in which
the advertising dealer is located.
The correspondence went on to say “the Consumer
Fraud Act, in part, bans deception, misrepresentation,
unfair practices, and omission of material fact with
intent that others rely on the omissions. It applies to
all representations or advertisements made for any
product or service. The Attorney General may file a
civil lawsuit under the Act to obtain refunds for injured
consumers, civil penalties up to $40,000 per violation,
Page 20
Recyclers News Press
