Auto Dealerships Settle Deceptive Ad Charges in FTC’s ‘Operation Steer Clear’
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Nine U.S. auto dealerships will settle deceptive advertising charges as part of a nationwide investigation by the Federal Trade Commission dubbed Operation Steer Clear, Automotive News reports today.
The FTC said the dealers in this case made several “misrepresentations” in print, internet and video advertisements that violated the FTC Act, falsely leading consumers to believe they could buy cars for low prices, get low monthly payments through financing and/or make no upfront payment to lease vehicles. One dealer misled consumers to believe they won prizes they could collect at the dealership, the FTC said.
“Car ads are an important source of information for serious shoppers,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection, in a statement. “Dealers’ ads need to spell out costs and other important terms customers can count on. If they don’t, dealers can count on the FTC to take action.”
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