FTC Action: Auto Dealership Will Pay $80,000 Penalty for Violating 2012 Order Prohibiting Deceptive Advertising of Vehicle Costs

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A West Virginia auto dealer, Ramey Motors Inc., has agreed to pay a $80,000 civil penalty to settle a Federal Trade Commission lawsuit brought in 2014. The FTC charged Ramey Motors with violating the terms of a 2012 consent order with the FTC that barred it from deceptively advertising the cost of buying or leasing cars.

The civil penalty settlement resolves charges that Ramey Motors’ ads violated the consent order by concealing important terms of sale and lease offers, such as a required down payment, and failing to make credit disclosures clearly and conspicuously, as required by federal law.

The civil penalty order also prohibits Ramey Motors from violating the 2012 order.

The Commission vote authorizing the staff to file the stipulated civil penalty order was 5-0. The order was entered by the U.S. District Court for the Southern District of West Virginia, Bluefield Division, on September 9, 2015.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Contact Information

Frank Dorman,
Office of Public Affairs