Mar 29 2014, 3:02pm CDT | by Forbes
Since January, the FTC has disclosed settlements with 10 dealerships in seven states. The latest example was last week, involving Courtesy Auto Group in Attleboro, Mass. According to the FTC, the group advertised “$0 down payment” without adequately disclosing other fees.
In a consent order, Courtesy Auto Group in effect agrees to obey the rules. That includes “clearly and conspicuously” disclosing, for instance, whether an advertised price is for a loan or a lease, and how much money is due at inception.
In another case, the FTC said Paramount Kia, Hickory, N.C., prominently advertised a $99 monthly payment, without disclosing prominently enough that the $99 payment was only for the first three months. After that, the monthly payment went up to $531.
Other dealerships included in the FTC crackdown were in California, Georgia, Illinois, Michigan and Texas.
“Dealers’ ads need to spell out costs and other important terms customers can count on,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection, in a written statement when the cases were first announced, earlier this year. “If they don’t, dealers can count on the FTC to take action.”
In some cases, according to the FTC, dealerships increased their chances of getting in trouble by taking ads that might have been OK in print or on TV and simply cutting and pasting them online.
Fine print that was at least plausibly legible in a newspaper ad or on TV became unreadable when it was reproduced in much tinier print online, or in a YouTube video.
Source: Forbes Auto
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.
blog comments powered by Disqus