Official: FTC steps in to curb deceptive car dealer trade-in practices [w/video]
 

Filed under: Car Buying, Marketing/Advertising

http://www.blogcdn.com/www.autoblog....-over-keys.jpgIn general, car dealers have reputations just below personal injury lawyers and politicians, so it's no surprise that most consumers are naturally wary whenever they engage in the process of buying a new vehicle.

As part of an effort to restore consumers' faith in the auto buying process, the Federal Trade Commission is intervening, calling out five dealers from around the country for what it says argues is deceptive advertising. According to the FTC, the dealer ads in question promise to "pay off your car" and to "pay off your trade no matter what you owe" when, in fact, they either rolled the balance of customers' trades into a new loan or just outright demand would-be buyers pay the difference out of pocket.

Tempting, yes, but anyone with a half-full brain cavity would almost certainly start asking questions before signing such paperwork, right? Well, maybe, but these sorts of tactics have spread among auto dealers, likely because they have proven effective.

The dealers named by the FTC 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, of Vernon and Milford, Connecticut and Ramey Motors, Inc., of Princeton, West Virginia.

The FTC's wrist slap settlement requires that for the next 20 years, the above dealers not run deceptive ads, keep copies of the ads they do run, and file reports with the FTC showing their compliance.

If they violate the FTC order, the dealers will be fined up to $16,000 for each infraction. Read all the details in the official press release after the jump, and while you're there, check out an example of one of one of the dealers' advertising handiwork as well.Continue reading FTC steps in to curb deceptive car dealer trade-in practices [w/video]

FTC steps in to curb deceptive car dealer trade-in practices [w/video] originally appeared on Autoblog on Thu, 15 Mar 2012 19:25:00 EST. Please see our terms for use of feeds.



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