News & Analysis as of

Unfair or Deceptive Trade Practices False Advertising Car Dealerships

Hudson Cook, LLP

FTC and Online Used Car Dealer Agree to Settle Alleged Unfair and Deceptive Advertising and Business Practices Claims

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On July 2, 2024, the FTC filed a joint motion for entry of the FTC and the Company's stipulated order for permanent injunction, monetary judgment, and other relief to resolve allegations of misleading consumers who purchased...more

BakerHostetler

Industry Challenges Lead to Postponement of New FTC CARS Rule to Stop Car Dealership ‘Scams’

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A recent rule promulgated by the Federal Trade Commission (FTC) seeks to regulate possibly deceptive practices in automobile sales. Finalized in December, the Combating Auto Retail Scams (CARS) Rule looks to protect...more

Ballard Spahr LLP

FTC postpones effective date for CARS Rule in response to legal challenge

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On January 18, 2024, the Federal Trade Commission’s (“FTC”) announced that it is postponing the effective date of the Combating Auto Retail Scams Rule (“CARS Rule”) in light of the legal challenge from industry trade...more

Troutman Pepper

FTC and Connecticut AG File Suit Against Auto Dealer over Alleged “Junk Fees”

Troutman Pepper on

The Federal Trade Commission (FTC) and Connecticut Attorney General William Tong filed suit against auto dealer Manchester City Nissan (Manchester City), its owner, and several employees for allegedly deceiving consumers...more

Hudson Cook, LLP

FTC Announces Settlement with Multistate Auto Dealership and General Manager Over Alleged Unauthorized Charges for Optional...

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HIGHLIGHTS: The Federal Trade Commission (FTC), jointly with Illinois, announced a $10 million resolution of allegations that a multistate auto dealership group and General Manager violated the FTC Act, Equal Credit...more

Hudson Cook, LLP

Indiana AG to Used Car Dealers: Do Not Pose as a Private Seller on Craigslist (or Elsewhere)!

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On January 15, 2021, Indiana Attorney General Todd Rokita entered into an Assurance of Voluntary Compliance with Moto Cars USA LLC, under which the AG alleged that Moto Cars violated Indiana's Deceptive Consumer Sales Act....more

McGlinchey Stafford

FTC report highlights concerns with dealer advertising and add-on products

McGlinchey Stafford on

On July 30, 2020, the Federal Trade Commission (FTC) issued a Bureau of Consumer Protection Staff report titled Buckle Up: Navigating Auto Sales and Financing. The report includes findings from the FTC’s April 2017 study and...more

Hudson Cook, LLP

How Not to Handle a Crisis: FTC Sues Marketer for Deceptive COVID Stimulus Mailers

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In April, we wrote about the Georgia Attorney General's Office's warnings against deceptive advertising related to COVID-19 stimulus payments. In its guidance, the AG noted the possibility that representations implying that a...more

Hudson Cook, LLP

FTC Nails Bronx Honda and General Manager for Discrimination and Deception

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The Federal Trade Commission made a big splash in late May when it announced a whopping $1.5 million settlement with Liberty Chevrolet, d/b/a Bronx Honda, and its general manager, Carlo Fittanto. Bronx Honda and Fittanto were...more

Hudson Cook, LLP

Georgia AG Warns Against Deceptive Advertising Related to COVID-19 Stimulus Payments

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The COVID-19 situation has turned everything on its head. Most retail commerce is shut down, many are working from home, and it has become commonplace to plausibly forget whether today is a Monday or a Friday. Despite all the...more

Hudson Cook, LLP

In Times of Peace, Prepare for War

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I just finished up a very active conference season. I’ve been on the “conference circuit” as some would say, since early January. Being on the conference circuit has enabled me to re-connect with friends, colleagues, clients...more

Ballard Spahr LLP

FTC Targets Auto Dealers, Alleges Deceptive Financing Practices

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The Federal Trade Commission (FTC) has filed an action against nine auto dealerships and their individual owners in a California federal court that the FTC described as its "first action against an auto dealer for 'yo-yo'...more

Ballard Spahr LLP

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

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A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

Ballard Spahr LLP

New York Announces Settlements with Six Auto Dealers

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Last week, New York Attorney General Eric Schneiderman announced settlements with six auto dealers imposing fines ranging from $7,500 to $15,000 for allegedly engaging in deceptive and misleading advertising practices. The...more

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