FTC Shuts Down Deceptive Dealerhip Ads


FTC / Federal Trade CommissionA pair of car deals based in Las Vegas NV were making advertising statements about deals to lure customers to their lots, only to find that many of the deals advertises weren’t generally available.

The dealers agreed to a settlement with the FTC.

Planet Hyundai and Planet Nissan were the names under which the dealerships did business.

FTC stated, “In promotions by Planet Hyundai for example, the FTC charged that the dealership misled consumers by prominently advertising a vehicle price for ‘$0 DOWN AVAILABLE’, and then in fine print noted that consumers must turn in a vehicle with a trade-in value of at least $2,500. The dealership also failed to disclose other information in its ads such as whether or not a security deposit was required.

“Among the deceptive ads by Planet Nissan were prominent offers for ‘PURCHASE! NOT A LEASE!’ when in fact, many of the offers were for leases. Ads by the dealership also failed to disclose the amount of a down payment required, and the terms of repayment.”

The FTC did not mention a monetary component to the settlement,  noting only that the dealers agreed to cease using misleading ads.