auto dealer in black and red logo
MenuMENU
SearchSEARCH

Two Las Vegas Dealers Settle FTC Charges

Two auto dealers in Las Vegas agreed to settle FTC charges that they used deceptive ads to promote the sale or leasing of their vehicles, including advertising heavily discounted prices that were not generally available to consumers.

by Staff
June 30, 2015
2 min to read


WASHINGTON — Two auto dealers in Las Vegas agreed to settle Federal Trade Commission (FTC) charges they used deceptive ads to promote the sale or leasing of their vehicles, including advertising heavily discounted prices that were not generally available to consumers.

According to the complaints, TC Dealership, L.P., doing business as Planet Hyundai; and JS Autoworld, Inc., doing business as Planet Nissan; violated the FTC Act by running ads that misrepresented the purchase price or leasing offers of their vehicles and the amount due at signing. Their ads also violated the Consumer Leasing Act (CLA) and the Truth in Lending Act (TILA) by failing to disclose required lease terms and other credit information.

For example, in promotions by Planet Hyundai, the FTC charged that the dealership misled consumers by prominently advertising a vehicle price for “$0 down available,” and then in fine print noted that consumers must turn in a vehicle with a trade-in value of at least $2,500. The dealership also failed to disclose other information in its ads such as whether or not a security deposit was required.

Planet Nissan produced deceptive ads with prominent offers for “Purchase! Not a lease!” when in fact, many of the offers were for leases. Ads by the dealership also failed to disclose the amount of a down payment required, and the terms of repayment.

As part of the proposed consent orders, the dealerships are prohibited from misrepresenting the cost to purchase or lease a vehicle and are required to comply with CLA and Regulation M and TILA and Regulation Z.

These cases are part of the FTC’s continuing efforts to protect consumers in the auto marketplace, such as Operation Ruse Control and Operation Steer Clear. The regulator voted 5-0 to issue the administrative complaints and accept the proposed consent orders. The agreements are subject to public comment for 30 days, beginning June 29 and continuing through July 29, 2015, after which the FTC will decide whether to make the proposed consent orders final.

More Auto Finance

Industryby StaffAugust 15, 2024

The Risk When the Customer Is Not in the Dealership

Take this series of steps to help protect your business from fraud by this method.

Read More →
F&Iby StaffAugust 13, 2024

Auto Loan Access Keeps Falling

July conditions tighter for consumers despite average loan rate decline.

Read More →
F&Iby StaffAugust 12, 2024

Dealers Wary of AI in Auto Finance

Poll shows growing aversion to technology’s accelerating part in process.

Read More →
Ad Loading...
Auto FinanceJuly 25, 2024

Is the Death Knell Being Sounded for Dealer Financing?

There appears to be a regulatory target on auto dealer-provided loans.

Read More →
Industryby StaffJuly 24, 2024

Ferrari Calls Cryptocurrency Foray a Success

Carmaker will add the payment options in its European dealerships this month after introducing it in the U.S. last year.

Read More →
Industryby StaffJuly 16, 2024

New-Vehicle Affordability Is Up

June conditions, including best average loan rate in a year, make buying more likely.

Read More →
Ad Loading...
Industryby StaffJuly 12, 2024

Pandemic-Era Prices Affect Trade-Ins

New buyers, especially those with EV trade-ins, are feeling the brunt of depreciation as market normalizes.

Read More →
Industryby StaffJuly 1, 2024

Auto Credit Crunch Tightens

Borrowers taking on more debt, moving many into delinquent territory.

Read More →
Auto Financeby StaffJune 19, 2024

New Cars Within Easier Reach

Affordability metrics improved in May as lending costs ebbed, finances flowed more freely.

Read More →
Ad Loading...
Auto Financeby Hannah MitchellJune 13, 2024

A Good Deal

Rising auto loan delinquencies, though bad news, could be another opportunity for agents to help dealers come down from pandemic highs.

Read More →