Area Car Dealers Settle Deceptive Ad Accusations

Auto dealerships in South Gate, Cerritos and La Puente found themselves under scrutiny by the Federal Trade Commission was investigating deceptive advertising.

File photo.
File photo.

Four Los Angeles County auto dealers agreed to settlements with the Federal Trade Commission as part of an agency crackdown on deceptive advertising, the agency announced today.

The Southland dealers named as agreeing to settle with the FTC are Honda of Hollywood, Norm Reeves Honda of Cerritos, Casino Auto Sales of La Puente and Rainbow Auto Sales of South Gate.

In the FTC crackdown dubbed "Operation Steer Clear," the dealers are accused of trumpeting deceptive deals in print, video and online ads.

For instance, one ad listed a price in large, bold lettering, but the fine print said the figure was the sale price after a sizeable down payment.

The charged dealers have agreed to settle with the FTC in 20-year consent orders, which prohibit the dealerships from using deceptive practices.

No fines or penalties were levied against the dealerships, but a violation of the consent order would result in a fine of $16,000 per violation per day, according to the FTC.

-- City News Service


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