Beware of Who Is Selling for YOU!

This showed up in my inbox this morning. Seems like I get something like this on a regular basis!

State reaches settlement with Washington car dealer and ad agency over deceptive marketing

Dealer group was accused of using a series of deceptive tactics to lure customers (10/30/2007)

The Washington Attorney General’s Office announced settlements with a car dealer and an out-of-state advertising firm accused of using deceptive promotions to sell cars.

The settlements resolve a civil lawsuit filed against Bruce Titus Automotive Group and Level 10 Marketing, based in Slidell, La. The defendants did not admit any wrongdoing but agreed to pay civil penalties and comply with injunctive provisions concerning their marketing practices.

The Attorney General’s Office alleged the defendants advertised cars without disclosing all terms, including stating how many vehicles were available at a specific price, that they suggested that financing could be guaranteed regardless of a consumer’s credit history, and used “simulated checks” and contest promotions that could mislead consumers. Those actions violated at least three of Washington’s consumer protection laws.

According to the complaint, the defendants sent ads that offered misleading prices and made it appear that the cars were substantially discounted. They also allegedly charged undisclosed fees and advertised vehicle lease and financing terms without all mandated disclosures. Some promotions were sent in envelopes labeled “OPEN IMMEDIATELY – TIME DATED MATERIAL” that resembled official certified mail. Other mailers looked like checks and included the words “PAY TO THE ORDER OF” but were actually ads. And some vehicle ads included statements such as “credit problems – no problem.”

The dealership group will pay $5,000 in civil penalties plus $30,000 in attorneys’ fees and legal costs. Level 10 will pay $15,000 in attorneys’ fees and legal costs. They also agreed to pay $10,000 in civil penalties, which will be suspended provided they comply with the settlement terms.

More often that not, out of state marketing companies don't seem to know your laws. Google any lead generator or marketing company's name followed by the word "lawsuit" and see what you get, before you sign up. Attorney generals throughout the country are cracking down on "deceptive marketing practices" by out of state companies holding staffed events or doing mailers for automobile dealerships.