Section 505. Advertisement  


Latest version.
  • 1.  An  advertisement  for  a rental-purchase
      agreement that refers to or states the amount of a payment or the  right
      to  acquire  ownership  of  any  one particular item under the agreement
      shall clearly and conspicuously state:
        (a) that the transaction advertised is a rental-purchase agreement;
        (b) the total number of payments and the total amount to  be  paid  to
      acquire  ownership,  which  amount  shall  be  explicitly labeled "total
      cost"; and
        (c) the circumstances under which the consumer can  acquire  ownership
      rights.
        2.   An   advertisement   for   personal  property  available  through
      rental-purchase agreements that refers to more  than  one  appliance  or
      particular  item  and  includes  information on periodic payment amounts
      shall include a representative item available at that amount  and  shall
      conspicuously state:
        (a) that the merchandise offered may be new or used;
        (b) that transaction advertised is a rental-purchase agreement; and
        (c)  that  the  consumer  does not acquire ownership rights unless the
      consumer complies with the ownership terms of the agreement.
        3. Every item displayed or offered under a  rental-purchase  agreement
      shall have clearly and conspicuously indicated in arabic numerals, so as
      to  be  readable  and  understandable  by visual inspection, each of the
      following affixed to the item:
        (a) the cash price of the merchandise;
        (b) the amount of  the  periodic  payment  and  the  total  number  of
      periodic payments required for ownership; and
        (c)  the  total  amount  that  must  be  paid  to acquire ownership of
      merchandise, which amount shall be explicitly labeled total cost.