Conant Auto Retail Group to pay $1.4 million to settle FTC claims

By Jamie LaReau

Norm Reeves, Inc. and other entities managed by Conant Auto Retail Group have agreed to pay $1.4 million to settle charges that they violated a 2014 Federal Trade Commission administrative order banning them from misrepresenting the cost to finance or lease a vehicle in their advertising.

The FTC charged the Los Angeles-area group with deceptively advertising that customers could pay nothing upfront to lease a vehicle. But that price did not include large fees and other costs.

The dealership group's ads also violated the Consumer Leasing Act by failing to disclose certain lease-related terms, the FTC said. One of the ads also violated the Truth in Lending Act and Regulation Z by failing to disclose certain credit-related terms, the agency said.

The proposed court order will settle the FTC's civil penalty complaint against the group's violation of the 2014 order by misrepresenting the total cost of vehicle financing or leases, the FTC said.

Read full article and learn more about Deceptive Advertising here.

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Disclaimer: This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.