News & Analysis as of

Automotive Industry Advertising

Ballard Spahr LLP

Vehicle Services Company CarShield Settles Complaint with FTC

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CarShield, a company that sells vehicle service contracts (VSCs), will pay $10 million to settle FTC allegations that its advertisements and telemarketing pitches deceived consumers, the agency announced on July 31....more

Foley & Lardner LLP

Foley Automotive Update - June 2024

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Analysis by Julie Dautermann, Competitive Intelligence Analyst This update helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. Key Developments - Foley &...more

Ballard Spahr LLP

Update on Petition to Review FTC’s CARS Rule

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Petitioners in the challenge to the Federal Trade Commission’s (“FTC”) Combating Auto Retail Scams Rule (“CARS Rule”) filed their Petitioners’ Brief on March 15, 2004 in support of their petition for review, and a who’s who...more

Morgan Lewis

FTC’s Final ‘Cars Rule’ on Dealer Sales Practices: Implications for Banks, Auto Finance, and ‘captives’

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The Federal Trade Commission recently issued a final rule that is squarely aimed at changing the way dealers interact with customers in the financing process. The final rule takes effect on July 30, 2024....more

Kelley Drye & Warren LLP

FTC’s Auto Dealer Rule Promises Sweeping Industry Changes

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On December 12, the FTC issued the Combating Auto Retail Scams Rule (“CARS Rule”) which will broadly regulate sales activities of motor vehicle dealers. Authorized by Congress through the Dodd-Frank Act and promulgated under...more

Seyfarth Shaw LLP

FTC Targets Bait-And-Switch Tactics And Hidden Fees With Rule For New Car Dealers

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After more than a year of review, the Federal Trade Commission (FTC) on December 12, 2023 launched its much-anticipated final rule targeting misleading advertising and sales tactics by new car dealers. First proposed in the...more

ArentFox Schiff

ArentFox Schiff Issues the First Global Definitive Legal Guide for Industries Navigating AI

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Artificial intelligence promises to transform the way we live and work and its impact will undoubtedly stretch to every business sector across the globe. This next generation of technology brings exciting possibilities and...more

Seyfarth Shaw LLP

2023 Super Bowl Auto Ads: Is There a Hidden Message?

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Super Bowl LVII saw a hobbled Patrick Mahomes lead the Kansas City Chiefs to a 38-35 victory over the Philadelphia Eagles. In addition to an entertaining halftime show by Rihanna, the Super Bowl is a marketing spectacle where...more

Seyfarth Shaw LLP

FTC Receives Flurry Of Comments As Dealers And Others Oppose New Car Dealer Rule

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The Federal Trade Commission (FTC) received dozens of submissions from dealer trade associations, other industry participants, and members of Congress opposing the FTC’s proposed rules for dealers in connection with the...more

Seyfarth Shaw LLP

FTC Begins Process To Adopt Rules For New Car Dealer Advertising And Sales

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On June 23, 2022, the Federal Trade Commission (FTC) announced that it has initiated the process to adopt regulations for dealers in connection with the advertising and sale of new cars. The proposed rules target “[d]ealer...more

Sheppard Mullin Richter & Hampton LLP

FTC Targets Junk Fees, Bait-and-Switch Advertising by Auto Dealers

On June 23, the FTC proposed a rule that would prohibit junk fees, bait-and-switch advertising, and other deceptive practices by auto dealers to protect consumers and honest dealers in the car-buying process...more

Venable LLP

FTC Starts the Engine on Car Sales Fees and Advertising Rulemaking, but Other Rulemaking Faces Major Questions

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The FTC is off to the races with another proposed rulemaking. On June 23, the FTC, by a 4-1 vote, issued a notice of proposed rulemaking (NPR) to combat what it perceives as “junk fees” and “bait-and-switch advertising...more

Troutman Pepper

FTC Proposed Ground-Breaking Federal Regulation of Motor Vehicle Dealer Sales Practices

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The Federal Trade Commission (FTC) has proposed a new and historic federal regulation specific to car dealers to address concerns of consumer deception in the sales process. On June 24, the FTC released a proposed Motor...more

Seyfarth Shaw LLP

Prominent Dealer Group Learns That Enforcers Aren’t Joking Around About Vehicle Price Advertising And Financing

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April Fool’s Day this year was no joke for a prominent dealer ownership group with locations in the Midwest and Southeast United States. On Friday, April 1, 2022, the Federal Trade Commission (FTC) and Illinois Attorney...more

Seyfarth Shaw LLP

2022 Super Bowl Auto Ads: the EVolution is here!

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A star-studded Los Angeles Rams beat the Bengals 23-20 in Super Bowl LVI while another year of star-studded auto industry Super Bowl Ads confirm the EVolution is here. While Super Bowl regulars like Audi, Mercedes, and Ford...more

Sheppard Mullin Richter & Hampton LLP

FTC Order: Auto Marketing Company and Owner Banned From Industry for Misleading Consumers

On January 28, the FTC announced that it banned an automotive marketing company and its owner from the auto industry for the next twenty years for allegedly engaging in unfair and deceptive practices in violation of the FTC...more

Katten Muchin Rosenman LLP

Life in The Fast Lane: How Urban Car Ads Depicting 'Street Art' Can Backfire - Kattison Avenue/Katten Kattwalk | Issue 1

Vehicle manufactures and their ad agencies really love to show off their driving machines in action. Television commercials depict sturdy, reliable trucks hauling tons of cargo; four-wheel drive SUVs navigating perilous...more

Seyfarth Shaw LLP

The Super Bowl's Auto Ads: What They Tell Us About the Industry

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In a season filled with unprecedented challenges, some things stayed the same: Tom Brady leading his team to victory and an unprecedented 7th Super Bowl title....more

Hudson Cook, LLP

FTC Staff Report on Buying and Financing Cars: Part I

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In July 2020, the Federal Trade Commission (“FTC”) issued its “Staff Report on Buying and Financing Cars.” The Staff Report consisted of two separate reports – a report from the FTC’s Bureau of Consumer Protection (“BCP”)...more

Spirit Legal

Palo Alto, we have a problem: German court says Tesla’s “Autopilot” is false advertising

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In its judgment of 14 July 2020 (case no. 33 O 14041/19), Munich’s regional court I (Landgericht München I) ruled that advertising claims made by Tesla in Germany amounted to misleading commercial practices under the...more

ArentFox Schiff

FTC Publishes Reports on Auto Sales Practices

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On July 30, 2020, the FTC announced two new staff reports which highlight some of the alleged challenges and confusion consumers claim they face in buying and financing a car, particularly relating to charges for add-on items...more

McGlinchey Stafford

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

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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

For Dealers, Many COVID-19 Questions, but Not Many Answers

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The coronavirus hit the auto sales, finance, and lease business suddenly and hard. Companies in those areas were not alone - the entire U.S. economy is wrestling with the virus's effects. Every area of commerce, it seems,...more

Hudson Cook, LLP

Courts Continue to Apply TCPA to Ringless Voicemail Services

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Dealers and automotive sales finance companies must proceed with caution when considering using ringless voicemail services to reach leads and current customers. The few courts that have considered the application of the...more

Robins Kaplan LLP

Financial Daily Dose 10.9.2019 | Top Story: Chair Powell says Fed will Expand its Treasury Securities Holdings

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Fed Chair Powell, speaking at an economics conference in Denver yesterday, made news by indicating that the central bank would “once again begin expanding its portfolio of government-backed securities”—a shift in policy...more

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