Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Auto dealers agree to settle FTC challenges to advertising practices, (Sep 3, 2013)

The FTC announced today that a Maryland auto dealer and an Ohio auto dealer have agreed to refrain from advertising discounts or prices unless their ads clearly disclose any qualifications or restrictions (In the Matter of Ganley Ford West, Inc., FTC File No. 1223269; In the Matter of Timonium Chrysler, Inc., FTC File No. 1323014, announced September 3, 2013).

The FTC alleged that the dealers—Timonium Chrysler of Cockeysville, Maryland, and Ganley Ford West of Cleveland, Ohio—falsely advertised the cost or available discounts for their vehicles. Under the terms of the proposed FTC consent orders, Timonium Chrysler and Ganley Ford West would be prohibited from advertising prices or discounts unless accompanied by clear disclosures of any required qualifications or restrictions. The auto dealers also would be barred from misrepresenting: the existence or amount of any discount, rebate, bonus, incentive, or price; the existence, price, value, coverage, or features of any product or service associated with the motor vehicle purchase; the number of vehicles available at particular prices; or any other material fact about the price, sale, financing, or leasing of motor vehicles.

The dealers also would be required to maintain and make available copies of all advertisements and promotional materials to the Commission for inspection upon request for the next five years, and they are required to comply with the FTC’s order for 20 years.

Companies: Ganley Ford West, Inc.; Timonium Chrysler, Inc.

News: Advertising ConsumerProtection FederalTradeCommissionNews