A Tennessee dealership accused of using deceptive advertising to target service members will be required to pay a $50,000 fine and change its advertising practices.
The FTC unanimously approved a final order settling its deceptive advertising complaint against Dallas-based Trophy Nissan, which was charged on Dec. 23 with violating the FTC Act, the Consumer Leasing Act and the Truth in Lending Act.
The FTC took action against two dealer groups it targeted in 2012 for deceptive advertising. They were charged with violating the FTC's orders prohibiting them from deceptively advertising the cost of financing or leasing a car.
A former FTC official and current partner with Hudson Cook LLP issues a warning about dealer advertising.
In addition to paying civil penalties and reimbursements to the state, the owners of the dealerships must work to resolve 45 consumer complaints. This is the second such settlement the dealers have reached with the state.
A coalition of consumer-protection groups asked the FTC to investigate CarMax for selling recalled vehicles. CarMax officials claim the chain is doing the best it can with a broken system.
Four affiliated dealerships in western Massachusetts have agreed to pay $175,000 over six months to resolve allegations that they regularly published misleading advertising and failed to follow through on sales prices and promotions.
The FTC has approved final consent orders settling charges that Nissan North America Inc. and an advertising agency deceptively advertised a Nissan Frontier truck pushing a dune buggy up a steep hill, something the truck cannot do.
After the FTC discovered that it was not disclosing substantial fees in its advertising, Courtesy Auto Group is now barred from stating the amount of any payment in its ads without disclosing the terms.
As part of the settlement, the six dealerships must reform their advertising practices and pay fines of up to $15,000. A seventh dealer was served with a statutory notice of the attorney general’s intention to file a lawsuit.
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