News & Analysis as of

Car Dealerships Federal Trade Commission (FTC) False Advertising

Hinch Newman LLP

1MM FTC Settlement With Online Used Car Dealer Over Alleged Misrepresentations and Failing to Deliver on Time

Hinch Newman LLP on

On July 2, 2024 the Federal Trade Commission announced that it initiated action against online used car dealer Vroom for allegedly misrepresenting that it thoroughly examined all vehicles before listing them for sale and...more

Hudson Cook, LLP

FTC and Online Used Car Dealer Agree to Settle Alleged Unfair and Deceptive Advertising and Business Practices Claims

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On July 2, 2024, the FTC filed a joint motion for entry of the FTC and the Company's stipulated order for permanent injunction, monetary judgment, and other relief to resolve allegations of misleading consumers who purchased...more

BakerHostetler

Industry Challenges Lead to Postponement of New FTC CARS Rule to Stop Car Dealership ‘Scams’

BakerHostetler on

A recent rule promulgated by the Federal Trade Commission (FTC) seeks to regulate possibly deceptive practices in automobile sales. Finalized in December, the Combating Auto Retail Scams (CARS) Rule looks to protect...more

Ballard Spahr LLP

FTC postpones effective date for CARS Rule in response to legal challenge

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On January 18, 2024, the Federal Trade Commission’s (“FTC”) announced that it is postponing the effective date of the Combating Auto Retail Scams Rule (“CARS Rule”) in light of the legal challenge from industry trade...more

Troutman Pepper

FTC and Connecticut AG File Suit Against Auto Dealer over Alleged “Junk Fees”

Troutman Pepper on

The Federal Trade Commission (FTC) and Connecticut Attorney General William Tong filed suit against auto dealer Manchester City Nissan (Manchester City), its owner, and several employees for allegedly deceiving consumers...more

Hudson Cook, LLP

FTC Announces Settlement with Multistate Auto Dealership and General Manager Over Alleged Unauthorized Charges for Optional...

Hudson Cook, LLP on

HIGHLIGHTS: The Federal Trade Commission (FTC), jointly with Illinois, announced a $10 million resolution of allegations that a multistate auto dealership group and General Manager violated the FTC Act, Equal Credit...more

McGlinchey Stafford

FTC report highlights concerns with dealer advertising and add-on products

McGlinchey Stafford on

On July 30, 2020, the Federal Trade Commission (FTC) issued a Bureau of Consumer Protection Staff report titled Buckle Up: Navigating Auto Sales and Financing. The report includes findings from the FTC’s April 2017 study and...more

Hudson Cook, LLP

How Not to Handle a Crisis: FTC Sues Marketer for Deceptive COVID Stimulus Mailers

Hudson Cook, LLP on

In April, we wrote about the Georgia Attorney General's Office's warnings against deceptive advertising related to COVID-19 stimulus payments. In its guidance, the AG noted the possibility that representations implying that a...more

Hudson Cook, LLP

FTC Nails Bronx Honda and General Manager for Discrimination and Deception

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The Federal Trade Commission made a big splash in late May when it announced a whopping $1.5 million settlement with Liberty Chevrolet, d/b/a Bronx Honda, and its general manager, Carlo Fittanto. Bronx Honda and Fittanto were...more

Hudson Cook, LLP

In Times of Peace, Prepare for War

Hudson Cook, LLP on

I just finished up a very active conference season. I’ve been on the “conference circuit” as some would say, since early January. Being on the conference circuit has enabled me to re-connect with friends, colleagues, clients...more

Hudson Cook, LLP

FTC's Rules of the Road for Advertising: A 5-Point Inspection

Hudson Cook, LLP on

On April 15, 2019, the Federal Trade Commission and the Office of the Georgia Attorney General presented "Green Lights and Red Flags: FTC Rules of the Road for Business." The program addressed a variety of issues, including...more

Ballard Spahr LLP

FTC Targets Auto Dealers, Alleges Deceptive Financing Practices

Ballard Spahr LLP on

The Federal Trade Commission (FTC) has filed an action against nine auto dealerships and their individual owners in a California federal court that the FTC described as its "first action against an auto dealer for 'yo-yo'...more

Ballard Spahr LLP

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

Ballard Spahr LLP on

A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

McNees Wallace & Nurick LLC

Dealer Advertising: No More Excuses

There are no more excuses. Dealers have seen all the ongoing and very recent announcements from the Federal Trade Commission (“FTC”) imposing millions of dollars in fines, cease and desist orders, and promises by dealers not...more

Ballard Spahr LLP

FTC Settles Nine Auto Dealer Deceptive Advertising Cases

Ballard Spahr LLP on

The Federal Trade Commission announced last week that it had entered into proposed consent orders with nine auto dealers in six states that were charged with deceptive advertising in violation of Section 5 of the FTC Act....more

Manatt, Phelps & Phillips, LLP

Advertising Law -- Sep 18, 2013

E-Cigarettes Increase Presence With Traditional Tobacco Advertising – Will Regulation Follow? - E-cigarettes are following in the footsteps of their nonelectronic predecessors by utilizing advertising means no longer...more

Ballard Spahr LLP

FTC Settles Deceptive Advertising Claims against Two Auto Dealers

Ballard Spahr LLP on

The Federal Trade Commission recently accepted agreements containing proposed consent orders from two car dealers who were charged with deceptive advertising in violation of Section 5 of the FTC Act....more

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