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Title 3 . Commerce, Community, and Economic Development
Chapter 7 . Land Sales
Section 220. Misleading advertising prohibited

3 AAC 07.220. Misleading advertising prohibited

(a) All advertisements, whether printed or spoken, must be truthful and must not be misleading or deceptive. In determining whether an advertisement violates the provisions, intent, or spirit of AS 06.40, the department will consider the layout of written copy and the inference or impression that may reasonably be drawn from the written copy or oral advertisement when considered with all other facts.

(b) It is misleading to use terms such as "lowest cost," "lowest rates," "quickest service," "legal rates," "no red tape," "easy payments," "repayment in easy installments," "new reduced rates," or "a new type of service." No comparative statement may be used in any advertisements unless the statement is factually accurate with respect to the business of the licensee using the advertisement. Any advertisements referring specifically to a change in a particular licensee's plan of operation may reflect only changes of substantial importance to the business of licensee; these advertisements may be used only during the first 60 days after the effective date of the operational change.

(c) It is misleading for a licensee to use "blind" loan advertisements that refer a prospective borrower only to telephone numbers or newspaper box addresses. Every advertisement must clearly indicate the identity of the licensee.

(d) It is misleading for a licensee, by advertisement or otherwise, to use any phrase or expression which refers to its authority or supervision by the state or any department or officer of the state except "Licensed under the Alaska Premium Financing Act, AS 06.40, and regulations adopted under the Act." This phrase must be used only in conjunction with the business of making premium finance loans.

History: Eff. 4/28/79, Register 70

Authority: AS 06.40.090

AS 06.40.180


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Last modified 7/05/2006