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Topics: Suntrup Ford, Suntrup Buick-Pontiac-GMC
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| Agency: Federal Trade Commission
Date: 9 November 1999 |
"When consumers are shopping for cars, they ought to have confidence in the information they're getting from ads," said Jodie Bernstein, Director of FTC's Bureau of Consumer Protection. "By helping to ensure that the all-important 'fine' print is readable, this action puts consumers in the driver's seat when they're negotiating their deal."
According to the Commission's complaint, following the issuance of the original order, Suntrup's vehicle leasing ads stated the amount of any payment or that any or no initial payment was required at lease inception, but failed to disclose "clearly and conspicuously" required financial information, including the total amount due prior to or at lease inception. Instead, the ads buried this information in type that was too small, that appeared on the screen for too short a time, or that was accompanied by distracting sounds or images. In addition, the complaint alleges that the ads did not disclose whether or not a security deposit was required.
Further, the complaint alleges that Suntrup's consumer credit advertising failed to provide consumers with disclosures required by the 1998 order. For example, one advertisement offered consumer financing for just "$1 down" without disclosing the terms of repayment or the annual percentage rate of the financing.
Under the consent decree, Suntrup, while not admitting any violations, would pay a civil penalty of $40,000 and would be required for two years to make the brochure Keys to Vehicle Leasing available to consumers who visit the dealerships. This brochure, developed by the Federal Reserve Board, FTC staff, industry representatives, and consumer groups, explains, in simple terms, the costs of vehicle leasing and the mechanics of a lease transaction.
CONSUMER EDUCATION INFORMATION ON VEHICLE LEASING
With the announcement of the action in this matter, the FTC also reminds consumers of its educational material available on the subject of vehicle leasing, all of which is available on its website at www.ftc.gov or by calling the Consumer Response Center at 1-877-FTC-HELP. This material includes the Consumer Alert "Look Before You Lease," that contains detailed information on the difference between leasing and buying a vehicle, factors to consider when deciding whether leasing is the right option for you, and tips to follow during the leasing process. Among these tips are:
In addition, the Alert contains a worksheet on Consumer Leasing Act disclosures to help consumers understand what their total costs are likely to be with regard to a particular lease arrangement. It also reminds consumers that federal law requires lessors to provide lease cost information before the lease is signed.
The Commission vote to approve the complaint seeking civil penalties and the settlement was 4-0. The complaint and consent decree were filed this morning in U.S. District Court for the Eastern District of Missouri, in St. Louis, by the Department of Justice.
NOTE: This consent decree is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent decrees have the force of law when signed by the judge.
Copies of the news release and legal documents related to this matter are available from the FTC's web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580; 877-FTC-HELP (877-382-4357); TDD for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.
(Civil Action No.: 4:99CV01746cej)
(FTC Matter No. C-3779)