FTC cracks down on Dallas-area car dealership over advertising

government actionConsumers have gotten used to fine print disclaimers that limit the offer in an advertisement. Unfortunately, some businesses take them WAY too far.

The Federal Trade Commission (FTC) recently put a stop to such advertising practices by a Dallas, Texas-area car dealership. According to the FTC, Trophy Nissan engaged in deceptive advertising promote the sale and lease of its vehicles. Ads included one claiming consumers could get out of their current loan or lease for $1. The dealership has agreed to settle FTC charges that it engaged in deceptive advertising.

The FTC alleges that Trophy used enticing offers to draw consumers in, then disclaimed their offers in small text in print and video ads. Allegedly deceptive ads included one that made consumers think they could get out of their current loan or lease for only $1–when in fact they could not. Instead, Trophy would add the balance of any loan or lease obligation to the balance of a new loan.