News

Motor Vehicle Dealerships:
Promotional Contests Using Scratch Off Games and/or Lottery-Style Game Mailers
Posted: April 14, 2026

The Tennessee Motor Vehicle Commission continues to receive complaints from consumers who received certain advertisements from Tennessee-licensed dealerships. These types of complaints have increased in the last 2 years. Most advertisements alleged to be violations are sent by mail and look like scratch-off lottery tickets, Monopoly or pull-tab games, or variations with codes or symbols that must match for the consumer to win a prize. Most of these promotions and games have been found to violate the Commission’s advertising rules and the Consumer Protection Act. As a result, the Commission has assessed civil penalties against dealers engaging in this type of advertisement.

Licensed dealerships are solely responsible for any violations arising from the sending of promotional mailers and from any violations that occur during the promotional event at their dealership. Any dealership using salespeople on a limited basis during these events must ensure that each salesperson holds a valid salesperson license issued by the Tennessee Motor Vehicle Commission.

All Tennessee-licensed dealers must comply with relevant state and federal laws, including the following rules issued by the Motor Vehicle Commission. Please review Tenn. Comp. R. & Reg. 0960-01-.12 and discuss your business plans with an attorney to be sure you are in compliance. 

Notice On Temporary Tags

The Commission may revoke a license for an act or practice involving the sale/ purchase of a motor vehicle that is either false, fraudulent, or deceptive. T.C.A. § 55-17-114(b)(1)(N).

The Commission may take such action against dealerships who have been found in violation of current laws and requirements related to the issuance of temporary tags. Current law provides for the issuance of one (1) temporary plate covering a sixty-day (60 day) period. [T.C.A. § 55-4-226 (c)(4)]

The Department of Revenue has allowed dealers a one-time extension for an additional sixty-day (60) day tag though we expect them to revisit this additional allowance in the near future. Dealers issuing more than the temporary tag limit allowed by Revenue (currently two (2) temporary tags), may be found in violation of T.C.A. § 55-17-114(b)(1)(N) and, as such, risk revocation of their license.

Further, any unauthorized use of the temporary tag (EZ Tag), e.g., placing an unauthorized temporary tag on a vehicle for which it is not registered; selling temporary tags for monetary gain, etc. may also result in substantial civil penalties (up to $5,000 per day, per occurrence), suspension, or license revocation.