How are dealers prohibited from being billed when using third-party internet advertising services?

Dealers are specifically prohibited from being billed on a per sale or per lead basis when using third-party internet advertising services because such billing methods can create conflicts of interest and may lead to unethical practices in the advertising of vehicles.

Billing on a per sale basis incentivizes advertisers to focus solely on closing sales rather than providing accurate and fair advertising. This could lead to misleading practices, as the advertisement may not represent the vehicle truthfully or could promote aggressive sales tactics to achieve a sale and, consequently, a fee.

Similarly, being billed on a per lead basis can lead to a quantity-over-quality approach, where the aim shifts to generating as many leads as possible rather than focusing on the value and validity of those leads. This can result in the dealer receiving numerous low-quality inquiries that do not convert into actual sales, wasting resources and time.

In contrast, billing on a per click basis is generally permissible because it typically encourages a more transparent advertisement model where the dealer pays for genuine interest in their vehicle offerings, indicated by clicks on ads without directly tying costs to sales outcomes. This model aligns the interests of both the dealer and the advertising service, focusing on visibility and interest rather than the sales process itself. Thus, the prohibition against per sale or per lead