Two Las Vegas Dealers Settle With FTC Over Deceptive Ads

Two dealers in Las Vegas reportedly used deceptive advertising and are facing backlash from the FTC.  The FTC and state government allege the dealers deceived customers in their ads. The two stores involved with are Planet Hyundai and Planet Nissan. The problem, according to an AP report, was that the two dealerships misrepresented costs in their advertising. Specifically, the dealers showed prices that weren’t in line with reality. Those falsified figures included monthly payment figures, vehicle purchase prices and stated down payment.

Misrepresented costs led to complaints from the FTC being filed against both stores. The complaint against Planet Hyundai zeroed in on one of their ads that indicated 50 percent off or $36/month for a 2014 Accent. However according to FTC documents, the requirements to hit any price point close to what was advertised could be difficult. The complaint states in part, “A consumer can qualify for the advertised prices only if the consumer meets certain qualifications for incentives, rebates, or discounts, such as being a recent college graduate, being a member of the military, owning a currently registered Hyundai, or trading in a qualifying vehicle.” The advertising by the dealers reportedly violated both the Consumer Leasing and Truth in Lending Act.

The complaint against the Planet Nissan store showed a graphic with a 2014 Nissan Pathfinder. Large yellow lettering indicated that the monthly payment price was for a purchase, not a lease. However, the payment was for a lease. The FTC complaint against planet Nissan states in part: “…despite the prominent “PURCHASE! NOT A LEASE!” statement, the advertised “$299” payment is for a lease, not a purchase.”

The dealers involved have agreed to remedy the situation. For Planet Nissan, George Chanos, who represents the company told the AP, “These ads go under multiple revisions – an offer may have changed from a purchase offer to a lease offer.” Chanos pointed to human error as the reason for mistakes in a November 2014 advertisement. As part of a settlement consent order, both dealerships are required to not misrepresent the cost of buying or leasing a vehicle in their advertisements. If for any reason the stores do not follow through on their agreement to follow the consent order, they could face fines of up to $16,000 per violation, per day.