Blog Posts Tagged with Automobiles

A new model for auto dealers?

There are three letters every auto dealer should know about. GTO? XKE? Good guesses, but not what we had in mind.

We’re talking about GLB.

The Gramm-Leach-Bliley Act requires financial institutions to give their customers initial and annual notices about their privacy policies. If the company shares certain customer information with particular types of third parties, they also have to give customers the opportunity to opt out of sharing. The FTC’s Privacy of Consumer Financial Information Rule – friends call it the GLB Privacy Rule – explains the specifics.

Vegas dealers called for deceptive claims

They say what happens in Vegas stays in Vegas. But here’s one thing that doesn’t belong in Vegas or anywhere else: ads that draw buyers in with eye-catching terms while burying the “gotchas” in fine print. In separate law enforcement actions, the FTC alleged that two Las Vegas dealers – car dealers, that is – didn’t play it straight with consumers.

What's in your window?

The Buyers Guide on a used car can’t confirm whether the original owner was that little old lady who just drove to church, but it offers other important information about the scope of any warranty the car comes with. The FTC’s Used Car Rule requires dealers to display the Buyers Guide on used vehicles offered for sale.

The latest word on warranties

Look at those lists of the most admired companies in America and what do you notice about them? Great products, for sure. But many also enjoy stellar reputations for service after the sale. When a buyer is confident you’ll stand by your product, you’ve probably created a customer for life. One measure of that is how you honor your obligations under the Magnuson-Moss Warranty Act.

Direct-to-consumer auto sales: It’s not just about Tesla

A fundamental principle of competition is that consumers – not regulation – should determine what they buy and how they buy it. Consumers may benefit from the ability to buy cars directly from manufacturers – whether they are shopping for luxury cars or economy vehicles. The same competition principles should apply in either case.

Operation Ruse Control: 6 tips if cars are up your alley

When it comes to car advertising, truth should be standard equipment. That’s the message of Operation Ruse Control, a coast-to-coast and cross-border sweep by the FTC and state, federal, and international law enforcers aimed at driving out deception in automobile ads, adds-ons, financing, and auto loan modification services. The FTC cases offer 6 tips to help keep your promotions in the proper lane.

Time 2 txt about data security basics?

53 and it’s likely to go up. That’s the number of data security law enforcement actions the FTC has settled so far. The facts of each case are different, but distilled down to the basics, they stand for one central proposition: Your company’s data security measures should be reasonable and appropriate in light of the sensitivity and amount of consumer information you have, the size and complexity of your business, and the availability and cost of tools to improve security and reduce vulnerabilities.

Advertise auto promotions car-fully

“$1 gets you out of your current loan or lease!” According to Trophy Nissan in the Dallas area, consumers could end their loan or lease for a buck – less than the cost of one of those air fresheners hanging from the rearview mirror. Trophy also promised to “match your tax refund so you can use it for a down payment!” Those are just two of the claims the FTC challenged as deceptive in a proposed settlement with the dealership.

Hat trick? FTC charges violations in auto loan servicing, debt collection, credit reporting

Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges.  (Shemp doesn’t count.)  But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers.  But there’s relief on the way in the form of a

Who decides how consumers should shop?

Consumers once shopped predominantly at their local stores; but first mail order catalogs and today the Internet have created new ways to shop for and purchase a wide range of goods and services. Similarly, consumers once arranged for taxis by hailing one from a street corner or by calling a dispatcher; yet today, smartphones and new software applications are shaking up the transportation industry, creating new business opportunities and new services for consumers.

A good deal

On any given Sunday in Illinois, consumers can do their weekly shopping at various “brick and mortar” stores or turn to online vendors virtually 24-7. They can even purchase alcohol on Sunday after 11:00 a.m. But for decades they have been barred by law from purchasing a new or used automobile from a licensed car dealer.

Zero sum game?

For people in the market for a car, an ad on YouTube for Massachusetts-based Courtesy Auto Group featured some eye-catching numbers:  “Get behind the wheel of the new 2013 Kia Sorento, now lease priced for $239 a month with zero down, or sale priced at $20,980.”  To emphasize the point, the visual on the screen highlighted in bold letters:

$239/mo
with $0 down

Less than meets the eye?

When an ad purports to show a “right before your eyes” demonstration of a product in action, the visual must be a truthful representation of what it can do.  If that’s not the case, both the advertiser and the ad agency can find themselves in law enforcement quicksand.  That may have been news to Don Draper and his colleagues at Sterling Cooper in the early 60s, but it’s been a well-established legal tenet since then.  The FTC’s complaint against Nissan North Amer

8 advertising potholes auto dealers should avoid

In a drive to encourage truth in auto advertising, the FTC has announced Operation Steer Clear – a coast-to-coast law enforcement sweep focusing on deceptive TV, newspaper, and online claims about sales, financing, and leasing.  If you have clients in the auto industry, the lessons of Operation Steer Clear can help keep them on the right track.

CARdinal rules for online advertisers

If there are strings attached to a particular deal, those material terms and conditions have to be clearly and conspicuously disclosed up front. That well-settled legal principle applies to online ads. It applies to car ads.  And so (QED) it applies to online car ads. That should come as no surprise to savvy marketers. But two FTC settlements underscore it, highlight it, and festoon it with multi-colored pennants for members of the auto industry — and other advertisers, too.

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