When can "clearance" or "close out" be used in advertising?

The term "clearance" or "close out" in advertising is specifically regulated to prevent misleading consumers. The appropriate use of these terms is when the dealership is legitimately closing down or liquidating inventory due to going out of business. This ensures that the promotions are truthful and accurately reflect the context of the sale. Misleading consumers by using these terms in unrelated contexts, such as regular sale events or seasonal discounts, can be deemed deceptive advertising practices.

In essence, using "clearance" or "close out" signifies an urgent need to sell off remaining inventory, which aligns with situations where a dealership is ceasing operations. Thus, this usage protects consumer interests by preventing any potential confusion around the intentions behind the sale.