FTC Sues Dealer Group

Chris K Leslie

Recently, the Federal Trade Commission (FTC) sued a dealer group, the individual in charge at the dealership, and an individual labeled as a “relief defendant” who received financial distributions from the dealerships.  The four dealerships, two of which appear to be domestic nameplate franchised dealers, do business in Arizona and New Mexico.  The complaint charges that the four dealerships allegedly:  

  • Misrepresented the income of applicants.  Instead of using customer provided information to complete financial applications, the dealerships used inflated numbers so that all the customers would have a higher monthly income.
  • Falsified the down payments of consumers to obtain approvals that might not otherwise be issued.
  • Used deceptive advertising that a vehicle could be purchased or leased at a low monthly cost when it could only be leased at that price and not purchased, and the disclosures were not clearly or conspicuously disclosed to the customer.
  • Violated the Truth in Lending Act and the Consumer Leasing Act by failing to disclose required terms in advertising. 





How do you guys take steps to make sure that your advertising is being disclosed properly? 


Amanda Gordon

Inspect what you expect on EVERYTHING. I'll be darned if a greedy manager risked my license to make a couple of extra bucks. We always need business bad, but NEVER bad business. 

Mark Rask

amanda is right

Derrick Woolfson

I think this happens far more than of what we realize on the dealer level. I am surprised the risk some dealers are willing to take by inflating income for the deal. If the customer were to default it will be found out eventually. 

Mark Rask

In florida our dealer franchise laws really protect the dealer

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