Section R. 445.803 - False, fraudulent, misleading, and deceptive advertisingRule 803.
(1) The following practices shall constitute, without limitation, false, fraudulent, misleading, and deceptive advertising in connection with the offer or sale of a franchise:(a) Failure to disclose in any communications media advertising the required total initial and deferred franchise fee for the franchise, or misrepresent, in any way, the fee.(b) Misrepresentation of the training or management assistance available to the franchisee. The failure to disclose that little or none is provided, unless this requirement is waived by the administrator, constitutes a misrepresentation.(c) Misrepresentation or causing confusion or misunderstanding regarding the source, sponsorship, approval, or certification of franchised goods or services.(d) Dissemination of an advertisement in a language other than English without including therein the required disclosures or limitations on the offer advertised in the language principally used in the advertisement.(e) Obtaining leads to prospective franchisees by placing classified advertisements designated or captioned "men wanted to train for . . . ," "help wanted," "employment," "business opportunities," or by words or terms of similar import, so as to represent directly or by implication that employment is being offered when, in fact, it is not.(f) Designation or reference to sale representatives as "registrars," "counselors," "advisors," or words of similar import that misrepresent, in any manner, the titles, qualifications, training, experience, or status of salesmen, agents, employees, or other representatives.(g) Representation in an advertisement that a person receive goods or services "free," "without charge," or any other term of similar import when the product or service is not, in fact, free.(2) An advertisement of a guarantee or warranty relating to the sale of franchised goods and services to the franchisee, or relating to the repurchase of the goods, shall clearly and conspicuously disclose the following:(a) The nature and extent of the guarantee, including disclosure of the following:(i) The product or service being guaranteed.(ii) The characteristics or properties of the designated product or service covered by or excluded from the guarantee.(iii) The conditions one claiming under the guarantee shall meet before the guarantor will fulfill its obligation under the guarantee.(b) The manner in which the guarantor will perform.(c) The identify of the guarantor.(3) A franchisor shall not advertise or represent that a product is guaranteed, or that it shall repurchase the product for a specified price, when it cannot promptly fulfill its obligations under the guarantee.(4) Deceptive price advertising in connection with the offer or sale of a franchise includes, among other practices, the following:(a) Falsely representing, in any manner, that goods or services are offered for sale at a reduction.(b) Representing that prices being charged are a reduction by "comparing" prices of goods of like kind and quality, where the comparison being made is not with other goods of essentially similar quality, obtainable in the area, and at an established price.(c) Advertising a special price or limited offer to persons when, in fact, the offer is not limited and is being made to many persons on a mass advertising or marketing basis, or when the price is the same as that charged to those occupying a status similar to that of a franchisee.Mich. Admin. Code R. 445.803