Bait & Switch and Suggested FTC Questions

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?