FTC Approves Final Consent Orders in Deceptive Auto Dealers’ Ads Cases

Following public comment periods, the Federal Trade Commission approved final consent orders involving 10 auto dealers’ deceptive advertising charges.

Under the settlement orders, the dealerships are prohibited from misrepresenting in any advertisement for the purchase, financing, or leasing of motor vehicles the cost of leasing a vehicle, the cost of purchasing a vehicle with financing, or any other material fact about the price, sale, financing, or leasing of a vehicle. When relevant, consent orders also address the alleged Truth in Lending Act and Consumer Leasing Act violations by requiring the dealerships to clearly and conspicuously disclose terms required by these credit and lease laws. In the case where the dealership misrepresented that consumers had won a prize, the consent order also prohibits misrepresenting material terms of any prize, sweepstakes, giveaway, or other incentive.

The ten dealerships are:

• Casino Auto Sales
• Courtesy Auto Group
• Honda of Hollywood
• Fowlerville Ford
• Infiniti of Clarendon Hills
• Nissan of South Atlanta
• Norm Reeves Honda Superstore
• Paramount Kia
• Rainbow Auto Sales
• Southwest Kia

The cases were part of Operation Steer Clear, a nationwide sweep focusing on misleading advertising associated with the selling, financing, and leasing of motor vehicles. Auto-related complaints remain one of the top 10 complaints to the Commission, and the sweep was part of the agency’s ongoing efforts to protect consumers in the auto marketplace.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.