TX auto dealers pay $85K CMP for false ads

The Federal Trade Commission reports that three Dallas-area auto dealers have agreed to pay a $85,000 civil money penalty to settle charges that they violated a Commission administrative order barring them from deceptively advertising the cost of buying or leasing a car. The FTC’s complaint cited a TV ad targeted at people with major credit problems, such as repossessions or foreclosures. The ad touted vehicles for $250 per month, but in fine print disclosed that the offer was based on a 4.25 annual percentage rate that few, if any, consumers with such major credit issues could obtain. In addition, the FTC alleged that the dealers advertised credit and lease terms without clearly and conspicuously disclosing information required by federal law, and failed to keep records required by the 2014 order.