Tag Archives: deceptive automobile ads

FTC Urged To Enforce Mandatory Recall Repairs On Used Vehicles

According to recent reports from the New York Times, a group of eleven consumer and safety organizations are petitioning the Federal Trade Commission (FTC) to investigate used car dealership, CarMax, for deceptive advertising practices. The group claims that the dealership is advertising their pre-owned vehicles as passing a rigorous 125 point quality inspection, but the inspection fails to carry out the basic step of checking to see if there are any unfixed safety recalls affecting the vehicle. Continue reading

Better Protections For Automobile Consumers

The Federal Trade Commission (FTC) is cracking down on automobile dealerships who use deceptive advertising to increase auto sales and service appointments. According to the consumer protection agency, automobile dealers made a variety of misrepresentations in print, internet, and video advertisements that offered zero-down financing when there are substantial fees, deceptive low-payment deals, sweepstakes for prizes that do not exist, and mailings that resemble vehicle recall notifications. Nine vehicle dealerships in six states have already agreed to a settlement that would cease deceptive ad tactics and subject dealers to a fine of $16,000 per violation. Continue reading

Beware Of Deceptive Auto Ads

The Federal Trade Commission (FTC) is cracking down on automobile dealerships around the country who have been running ads that mislead consumers into thinking the dealership will pay off the remaining loan balance on their existing car when they trade it in. These dealerships then add the cost of the old car loan into the price of the new loan. The buyer ends up with a loan that they must pay off for a longer period of time because they are paying off their old car and new car at the same time. This is known as negative equity auto trade ins. In some cases, dealers force customers to pay off the old loan in cash before they could get their new car.

The dealers named in the FTC’s complaints include:

  • Billion Auto, Inc., in Sioux Falls, South Dakota
  • Frank Myers AutoMaxx, LLC, in Winston-Salem, North Carolina
  • Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, in Vernon and Milford, Connecticut
  • Ramey Motors, Inc., in Princeton, West Virginia

Three of the cases allege violations of the Truth in Lending Act (TILA) and its implementing Regulation Z for failing to disclose certain credit-related terms, and the complaints in two of the cases allege violations of the Consumer Leasing Act (CLA) and its implementing Regulation M for failing to disclose certain lease related terms.

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