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Dealership Settles False Ad Claim

December 27, 2005

Tucson, Ariz. -- Holmes Tuttle Ford of Tucson, Ariz. has agreed to pay $75,000 to settle a false advertising claim from the state Attorney General’s Office, according to the Arizona Daily Star.

The agreement stems form a January promotion in which Holmes Tuttle advertised a deal for $29 down and 50 percent off MSRP that Attorney General Terry Goddard says only applied to two vehicles on the lot.

Despite the fact that the dealership is now under new management, Holmes Tuttle also agreed to some stipulations to its business practices. One such stipulation is that when advertising a sale or lease, the dealership cannot imply that the deal applies to all, most or even many vehicles unless that is specifically the case.

Besides agreeing to the settlement and stipulations, Sharif Khayat, Holmes Tuttle’s new general manager, also vowed that all future advertisements for the dealership would come under his personal scrutiny to ensure that there are no misleading claims.

According to the Star’s report, the $75,000 settlemet will be used by the state office to pay legal fees, investigate costs and fund consumer fraud education programs.

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