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VPA Standards of Conduct: Misrepresentations Prohibited

It is imperative that VPA Members never misrepresent the nature of the products they sell and the coverage they offer.

More specifically, with respect to misrepresentations, the VPA Standards of Conduct requires the following:

2.3.1. Scope of Coverage. Members shall not misrepresent the scope of vehicle service contracts they sell by stating that they offer "bumper to bumper" coverage or use similar terms to represent or imply that all parts are covered under the contract.

2.3.2. Warranty References. Members shall not refer to a vehicle service contract as a "warranty," "extended warranty" or similar term in any advertisement or during any sales solicitations. Members may use these words to describe the manufacturer's coverage or as otherwise outlined in Appendix B. It is the totality of the sales presentation that determines whether the presentation is deceptive or not. Thus, it is possible to comply with this Standard and still have a script or sales presentation that is deceptive. Members who choose to use these words must, therefore, ensure that their scripts in totality are not deceptive and must monitor sales presentations to insure that their sales representatives who use these words do not do so in a deceptive manner.

2.3.3. References to Manufacturers. Members shall not communicate with customers so as to infer that they are agents of the vehicle manufacturer if such is not the case. If a member refers to a manufacturer or dealer in a marketing piece, it must also disclose in the piece in a clear and conspicuous manner that it is not affiliated with those entities or state that it is an independent company selling vehicle service contracts.

2.3.4. Insurance Terms. Members shall not use in their advertisements, sales solicitations or any other description of their products, words such as "insurance," "surety," "mutual"

Return to Standards of Conduct: The Basics

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