FTC announces advertising violation actions against dealers
The FTC has proposed consent agreements with two dealerships in the Baltimore and Cleveland areas for alleged advertising violations that appeared on their websites.
In the Maryland case, the FTC alleged that the dealer advertised specific dealer discounts and prices as being generally available to consumers when in fact, consumers later learn that there were significant restrictions on obtaining the advertised discounts or that the dealer-advertised discounts are not available in full. The FTC said that in numerous instances, the advertised discount and price was subject to various qualifications and restrictions such as, being a member of the military, being a recent college graduate, possessing a bank account at a particular bank, or owning a vehicle that has a lien on it. Even if consumers met all of these qualifications, they often could not obtain the advertised discount and price.
In the Cleveland case, the FTC alleged that the dealer advertised particular Ford models available at a specific dealer discount, but when consumers reached the dealership, they found out that [the dealership] failed to disclose that specific discounts were available for some, but not all, of the Ford models advertised.Download Bulletin PDF