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Ariz. Dealership Settles Lawsuit Over False Ads

January 5, 2005

TUCSON, Ariz. -- An auto dealership has agreed to pay $152,000 to settle a lawsuit charging that the company had falsely advertised car prices.

Filed by the state, the suit alleged that television and radio ads run by Precision Toyota of Tucson offered consumers 50 percent off the manufacturer's suggested retail price on “every new Toyota in stock,” reported the Associated Press.

In reality, the discount only applied to the residual value on leased cars. The lawsuit claimed that this practice violated the Arizona Consumer Fraud Act.

According to the AP report, officials with Rowe Enterprises Inc., which does business as Precision Toyota, said the parties "agreed to a compromise of the disputed claims" and noted that there was no determination of liability or civil fine assessed by the state.

The $152,000 settlement will go to pay the state's legal costs and contribute to a state consumer-protection fund.

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