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Deceptive Advertising

Calif. DMV Puts Tesla Motors on Notice

In response to the state dealer association’s claims that Tesla Motors is in violation of state and federal advertising laws, the state DMV issued a warning to electric vehicle makers about adhering to such laws.

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Fifth Third Bank to Cap Dealer Markups

The CFPB and DOJ announced two actions against Fifth Third Bank on Monday, one of which requires the finance source to pay $18 million in restitution to minority auto loan borrowers, as well as limit its dealer partners’ ability to markup interest rates on auto loans.

W.Va. Dealer to Pay $80,000 Penalty to FTC

Ramey Motors has agreed to settle a Federal Trade Commission lawsuit filed last year, which claimed the dealership violated the terms of a 2012 consent order that barred it from deceptively advertising the cost of buying or leasing cars.

FTC Official Releases 7 Deadly Sins of Dealer Advertising

Ahead of her appearance at the Innovate 2015 conference, the FTC official who led Operation Ruse Control has released a list of advertising sins that have put dealers on her regulatory radar.

N.Y. AG Announces Two Actions Against Dealers

New York Attorney General Eric T. Schneiderman announced two separate actions this week against a 22-store dealer group and a Hyundai dealership, both related to deceptive advertising practices.

Two Las Vegas Dealers Settle FTC Charges

Two auto dealers in Las Vegas agreed to settle FTC charges that they used deceptive ads to promote the sale or leasing of their vehicles, including advertising heavily discounted prices that were not generally available to consumers.

N.J. Dealerships to Pay $135,000 Settlement

The New Jersey Division of Consumer Affairs has reached a $135,000 settlement with Bergen Auto Enterprises, which does business as Wayne Mazda and Wayne Auto Mall Hyundai. The dealerships were accused of engaging in deceptive business and advertising practices.

FTC Approves Final Consent Orders in Two Deceptive Ad Cases

The Federal Trade Commission has approved final consent orders which prohibit Jim Burke Nissan of Birmingham, Ala., and Ross Nissan of El Monte, Calif., from deceptively advertising the sale, financing and leasing of their vehicles.

Texas DMV Halts Plan to Fine Dealers With CarGurus Listings

The Texas Department of Motor Vehicles Enforcement Division has pulled back on its plan to fine dealers with listings on CarGurus.com after the department and the shopping site discussed revisions to CarGurus’ advertising practices in a call yesterday.

Texas Dealers Could Face Fines Over CarGurus’ Business Practices

Last week, the Texas Department of Motor Vehicles Enforcement Division issued a cease-and-desist letter to CarGurus and the state’s dealer association, threatening dealers with fines up to $10,000 a day if the shopping site does not revise its advertising practices.