Friday, September 30, 2016

The FTC Strikes Again – and This Time it’s a Game-Changer

Back in January of 2014, I wrote in my article The FTC Strikes Again – You Ain’t Seen Nothing Yet that “although it may seem that the FTC is only the ‘dealer advertising cop’, they are expanding their reach in several other areas”. Well, that prediction has come home to roost in a big way.

This week, the FTC charged nine California auto dealerships and their owners with using a wide range of deceptive and unfair sales and financing practices.

In addition to deceptive advertising (among the worst of which was advertising $38 down/$38 month when the actual deal was $2695 due at signing and payments of $179 after the first 6 months), the dealers were accused of the following: