Dealers Must Be More Careful About Advertising

Automotive News

Speed Read:

Recent buzz in deal­er cir­cles: two stores that got nailed by FTC for mak­ing bad, mis­lead­ing ads.

Set­tling charges by FTC for alleged decep­tive adver­tis­ing is cost­ly, embar­rass­ing, and time-con­sum­ing for deal­er­ships.

Drill-Down Details:

  • Spend­ing mon­ey now to avoid future issues and dis­rup­tions
  • Hir­ing lawyers, chang­ing Web providers, and check­ing ad con­tent
  • Deal­er in Cleve­land and one in Bal­ti­more con­clud­ed such set­tle­ments
  • FTC is crack­ing down on deal­er adver­tis­ing in last 2 years
  • Now a major pri­or­i­ty for FTC, more than ever
  • FTC cri­te­ria is that cus­tomers need to be ful­ly informed
  • Web devel­op­ers pro­gram­ming pages that show vari­able dis­clo­sures
  • Deal­ers avoid­ing men­tion­ing of price in ads
  • Hir­ing com­pli­ance groups to be sure ads meet stan­dards
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