Ftc cracks down on auto dealers

Dealers are making promises to pay off old car loans to draw business. For example, sage auto allegedly told customers the contract was cancelled, but the dealer would keep their down payments or tradeins if the customers refused to sign a new deal. Ftc takes legal action against car dealers for deceptive. Legal action against dealers for deceptive advertising. The agency said thursday that it has reached agreements with nine auto dealers nationwide to settle. The federal trade commission is clamping down this year on misleading auto dealership advertising, in a series of cases the ftc named operation steer clear. The federal trade commission is taking action against two auto dealerships and an ad agency for. Cracks down on carwarranty robocalls the new york times. Ftc cracks down on used car dealer fraud what are the. Announces crackdown on auto dealer ads, which includes settlements with dealerships. Federal trade commission cracks down on car dealers deceptive advertising. Pennsylvania attorney general cracks down car dealers engage in false advertising.

The federal trade commission, which has a weakness for giving its enforcement actions catchy names, said it had reached consent orders with a couple of auto dealers accused of misleading advertising. The ftc has taken action to stop these misleading practices by continuing its effort to crack down on deceptive advertising among automobile dealerships, which began in 2014 with the ftcs operation steer clear, a nationwide sweep of deceptive car dealership advertising. The used car rule requires auto dealers to display on used cars a window sticker called a buyers guide with important information for consumers. Just days ago the federal trade commission ftc announced a nationwide sweep against car dealers called operation steer clear, to fight deceptive advertising from car dealers. A twocountry crackdown on auto dealers deceptive, fraudulent practices. Ftc cracks down on credit repair schemes automotive news. Ftc used car rule, and its been on the books since 1985. For uptodate information on this subject please contact a clark schaefer hackett professional. There are still plenty of auto dealerships around the country, however, that either dont know about the rule, or just dont care enough to comply. Ftc cracks down on used car dealer fraud what are the latest scams. Ftc cracks down on deceptive advertising practices by keri grubbs january 19, 2016. Cbs, fox and nbc over its commercialskipping auto hop feature, which they see as a threat to adsupported television. Thats why our partners are working together to crack down on deceptive marketing about car sales, leasing and financing.

Ftc, multiple law enforcement partners announce crackdown on. Ny attorney general cracks down on undisclosed safety recalls. The federal trade commission has charged a group of four auto dealers operating in arizona and new mexico, near the border of the navajo nation, with a range of illegal activities, including falsifying consumers income and down payment information on vehicle financing applications and misrepresenting important financial terms in vehicle advertisements. We know that you have high expectations, and as a car dealer we enjoy the challenge of meeting and exceeding those standards each and every time. For the first time since receiving expanded authority over auto dealers under the doddfrank act, the ftc has taken two auto enforcement actions involving add. Congress cracks down on lending, but car dealers squeeze through. However, in a welcome development for established brands, the federal trade commission ftc signaled it is cracking down on fraudulent. If you read any of the automotive industry trades, youve probably noticed more articles related to the ftc and deceptive dealer advertising. Ask the dealer for a copy of the warranty document and an explanation of warranty coverage, exclusions, and repair obligations. It requires car dealers to display a window sticker, known as a buyers guide, on the used cars they offer for sale.

Ftc cracks down on dealer advertising again scali rasmussen. The federal trade commission seems to be cracking down on false or exaggerated advertising, as it recently called into question ads from a group of five dealerships around the country. For the first time since receiving expanded authority over auto dealers under the doddfrank act, the ftc has taken two auto enforcement actions involving addons, which is the practice of a dealer or other third party adding to the vehicle sales, lease, or finance agreement charges for other products or services. The used car rule, formally known as the used motor vehicle trade regulation rule, has been in effect since 1985. Sep 9, 20 buying a car is a huge financial commitment, and people often calculate what they can pay down to the penny, said jessica rich, director of the ftcs bureau of consumer protection. Ftc cracks down on deceptive dealer advertising scali. This month the ftc sanctioned two of those five dealers, billion auto and ramey motors, for continuing to run. Ftc cracking down on car dealer ads with fine print thats too. How to stay compliant with the ftc used car rule autoraptor. Ftc cracks down on companies for deceptive online marketing.

Read consumer reports advice on how to avoid being victimized. Federal trade commission cracks down on car dealers. Local auto ads have never been known for their subtlety, but some went too far, according to the federal trade commission. Ftc cracks down on illegal robocalls buy here pay here. United states ftc cracks down on predatory warranty. The federal trade commission is broadening its enforcement of car dealerships to crack down on deception and fraud in operations that go beyond advertising.

The federal trade commission wanted to send a signal to auto dealers. According to the ftc, it requires car dealers to display a window. Georgia department of laws consumer protection division. The ftcs efforts in this area have continued, most recently. Ftcs auto industry crackdown includes deceptive advertising. After the ftc amended the used car rule back in 2016, dealers had over a year to comply. The federal trade commission staff has sent warning letters to six major companies that market and sell automobiles, cellular devices, and video gaming systems in the united states. We also see cases where new car dealers conceal that the car has been in accident while in their possession or used car dealers who put duck tape in back of the check engine light to conceal serious engine or emission problems. The federal trade commissioni fines two car dealers for violating a 2012 adminstrative order to cease deceptive advertising practices. Nine auto dealers agree to settlements over a range of advertised promotions.

Ftc, multiple law enforcement partners announce crackdown. They should be able to depend on the dealers to provide truthful information, and they. Dealership advisor archives page 3 of 3 mac murray. Pennsylvania attorney general cracks down car dealers. The federal trade commission has agreed to settlement over. Auto dealers have consistently argued that any more regulation in this area would put a sizable dent in their business and. Ftc cracks down on auto dealers deceptive practices. In a case announced today, the ftc alleges that tates auto center of winslow, inc. Feds cracking down on fraudulent dealer practices autoblog. The good news for bhph dealers is that the federal trade commission recognizes phone calls used to contact legitimate debt holders and customers delinquent on their monthly car payments as different from the obnoxious illegal calls they are seeking to curtail.

The buyers guide discloses whether the dealer offers a warranty and, if so, its terms and conditions, including the. Ftc cracks down on credit repair services carprousa. All vehicles shown on this website are offered for sale by licensed motor vehicle dealers, unless where otherwise noted. The federal trade commission is taking action against two auto dealerships and an ad agency. The auto dealers agreed to stop their deceptive advertisements and to follow the consumer protection law and auto regulations. Federal trade commission ftc case focusing on internet auto lease ads, car dealers in colorado, new york and pennsylvania have settled charges that they ran deceptive lease advertisements on the internet. Honda of hollywood is one of four southern california auto dealers that has agreed to settle deceptive advertising. Even if there is a 100% certainty that an unrepaired safety recall defect will immediately kill anyone who buys a socalled certified car and their family, the ftc would allow car dealers to advertise that car as safe and repaired for safety, said michael brooks, acting director of the center for auto safety. Massachusetts attorney general maura healey also cracked down on a car.

The ftc alleges that sage auto engaged in a host of yoyo financing tactics. Congress cracks down on lending, but car dealers squeeze. Ftc charges auto dealerships in arizona and new mexico. The consumer financial protection bureau is targeting violations of strict rules for socalled furnishers, including auto lenders, plus in many cases their vendors, and potentially some independent dealers and buyhere, payhere dealers, assuming they all furnish consumers nonpublic personal information to credit reporting bureaus. Ftc cracks down on deceptive dealership advertising. Ftc takes action against claimants of privacy shield. Two las vegas dealerships agreed, on june 29, 2015, to settle ftc charges of misleading sale and lease advertisements. Dallasarea dealers settle with ftc auto finance news.

The federal trade commission has filed complaints against two companies said to be behind a deceptive telemarketing campaign, following a complaint from senator charles e. Beware of deceptive cars ads ftc crack down consumer. The federal trade commission today announced a new crackdown on con artists who are preying on unemployed americans with jobplacement and workathome scams, promoting empty promises that they can help people get jobs in the federal government, as movie extras, or as mystery shoppers. Dealerships should educate customers about fraudulent credit repair tactics and make sure borrowers are improving their credit profiles legally. Those not fulfilling their word on the auto loan purchases are being targeted by the ftc. The key to steering clear of the ftcs crack down on car dealership advertisements. Reporter covering the financeandinsurance business and auto retailing for automotive. Here are answers to questions weve heard about complying with the revised rule.

Ftc flags auto dealers for fine print multichannel. Honda of hollywood is one of four southern california auto dealers that has agreed to settle deceptive advertising charges as part of. The national auto dealers association also declined to comment on the lawsuit, but jared allen, senior director of media relations. Ftc cracks down on deceptive auto dealer ads usa today. The key to steering clear of the ftcs crack down on car. The federal trade commission says it is cracking down on deceptive advertising by auto dealers. The dealers named as agreeing to settle with the ftc included four in california. The federal trade commission ftc has again targeted automobile dealers for allegedly deceptive advertising. Ftc cracking down on car dealer ads with fine print thats.