While already legally prohibited, the proposed rule is designed to:
Prohibit dealers from making a variety of deceptive advertising claims to lure in car buyers only to face the fallout of false promises that don’t pan out, including:
- Cost of a vehicle, cost of add-on products/services
- Terms of financing, financing terms for lease vs. purchase, and whether a financed deal is final
- Availability of discounts or rebates
- Actual advertised vehicle availability
Questions to Submit to the FTC
- In addition to the advertised pricing and inventory availability cited above, this specific proposal could also define when a transaction is considered “final” or if there was any misrepresentation during the consumer’s finance application. The FTC could forbid dealers from keeping cash down payments, trade-ins, or acting if a transaction does not come to fruition – essentially ending spot deliveries.
- Ask for clarification or a limit to advertising as the FTC and CFPB both have consumer finance application protections in place. Is duplication necessary which may cause more customer confusion and frustration?