Skip site links
Skip navigation
Skip to main content

My AAMVA Log In

If you are a member, please Log In or Register Now!

Vehicle Sales Over the Internet

Advertising of Vehicles Over the Internet

This model law would specify the contents of motor vehicle sales advertising displayed on the internet. Because a jurisdiction cannot regulate dealers outside of its territory, the law only regulates motor vehicle dealers licensed by or doing business in the jurisdiction. The main purpose of the law is to provide consumers with information about the identity and location of the dealer.

Advertising of Motor Vehicles Over the Internet and Jurisdiction of State Courts

This is a "long arm" statute. Long arm statutes are intended to bring residents of one state or province under the jurisdiction of the courts of another state or province. In order to do this constitutionally, the nonresident must have certain "minimum contacts" with the other state or province. Because the Internet is so new, there is little case law defining what these minimum contacts would be for Internet transactions. This model law takes a very broad view as to what activities will subject a seller of vehicles over the Internet to another jurisdiction’s courts and may need to be modified as case law develops. The law also provides for service of process on the secretary of state. This is a common provision in this type of statute.

Unfair and Deceptive Trade Practices, Fraud, etc., and Internet Transactions

This model law provides that if an activity is illegal in real space, it’s illegal in cyberspace. Before proposing such a statute, jurisdictions should carefully consider whether it is needed. The common or statutory law of a jurisdiction may already contain such a principle, in which case it may be argued that this model law somehow narrows the application of traditional fraud and deceptive advertising law to the Internet.